SolarEdge Technologies Inc (SEDG)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	330,006	627,381	624,451	1,243,070	1,146,700
Total assets	US$ in thousands	2,630,200	4,587,730	4,265,950	2,900,950	2,437,110
Debt-to-assets ratio		0.13	0.14	0.15	0.43	0.47

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $330,006K ÷ $2,630,200K
= 0.13

The debt-to-assets ratio for SolarEdge Technologies Inc has shown a declining trend over the past five years, decreasing from 0.47 in December 2020 to 0.13 in December 2024. This indicates that the company has been successful in reducing its debt relative to its total assets over this period. A lower debt-to-assets ratio is generally considered favorable as it suggests lower financial risk and greater financial stability. SolarEdge's decreasing ratio may reflect effective debt management practices and a stronger financial position, potentially enhancing investor confidence in the company's ability to meet its debt obligations.