SolarEdge Technologies Inc (SEDG)

Quick ratio

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cash	US$ in thousands	259,498	214,229	338,468	551,122	557,744	727,849	783,112	678,329	745,534	1,002,770	530,089	526,588	524,112	685,157	827,146	1,048,110	428,372	324,072	223,901	247,342
Short-term investments	US$ in thousands	430,333	466,407	521,570	477,275	493,176	410,820	241,117	202,598	150,259	158,557	167,728	145,459	145,686	139,079	143,687	110,585	113,032	95,143	91,845	85,343
Receivables	US$ in thousands	82,297	61,480	55,418	8,125	1,291,630	1,116,780	0	785,325	669,100	676,820	527,380	416,244	343,652	271,713	275,323	183,141	181,700	235,673	382,300	292,232
Total current liabilities	US$ in thousands	566,824	658,890	893,231	876,651	897,729	900,042	889,717	694,480	612,174	568,741	525,181	405,507	399,585	397,726	436,099	382,537	405,065	389,681	436,714	335,407
Quick ratio		1.36	1.13	1.02	1.18	2.61	2.51	1.15	2.40	2.56	3.23	2.33	2.68	2.54	2.76	2.86	3.51	1.79	1.68	1.60	1.86

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($259,498K + $430,333K + $82,297K) ÷ $566,824K
= 1.36

The quick ratio of SolarEdge Technologies Inc has shown fluctuations over the past few quarters. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets.

In analyzing the quick ratio trend, we observe that it has ranged from 1.02 to 3.51 over the provided periods. Generally, a quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

Specifically, in the most recent quarter, the quick ratio stood at 1.36, indicating that the company had $1.36 in liquid assets available to cover each $1 of current liabilities. This suggests a healthy liquidity position.

The quick ratio peaked at 3.51 in the third quarter of 2020 and has shown some volatility since then. An extremely high quick ratio may suggest that the company is holding an excessive amount of liquid assets, which could be utilized more effectively elsewhere.

Overall, it is important to continue monitoring the quick ratio along with other financial metrics to assess SolarEdge Technologies Inc's liquidity position and financial health accurately.