SolarEdge Technologies Inc (SEDG)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	627,381	624,451	1,243,070	1,146,700	173
Total assets	US$ in thousands	4,587,730	4,265,950	2,900,950	2,437,110	1,494,620
Debt-to-assets ratio		0.14	0.15	0.43	0.47	0.00

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $627,381K ÷ $4,587,730K
= 0.14

Solaredge Technologies Inc's debt-to-assets ratio has shown a fluctuating trend over the past five years. The ratio decreased from 0.25 in 2020 to 0.01 in 2019, indicating a significant reduction in debt relative to total assets. However, in the subsequent years, the ratio increased to 0.23 in 2021 and 0.16 in 2022 before slightly decreasing to 0.15 in 2023.

The decreasing trend from 2020 to 2019 suggests that Solaredge managed its debt levels effectively and improved its asset base during that period. However, the subsequent increase in the ratio from 2021 to 2022 may indicate a shift towards higher debt levels compared to assets. The slight decrease observed in 2023 could suggest a potential effort to reduce debt or increase asset base to strengthen the financial position.

Overall, Solaredge Technologies Inc's debt-to-assets ratio indicates a moderate level of financial leverage, with the company maintaining a balance between debt and assets in recent years. Monitoring this ratio in the future will be important to assess the company's ability to manage its debt obligations and maintain a healthy financial position.