SolarEdge Technologies Inc (SEDG)

Debt-to-assets 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
Long-term debt	US$ in thousands	638,703	628,115	627,381	626,647	625,914	625,182	624,451	623,721	622,991	622,263	1,243,070	620,808	620,082	619,357	1,146,700	570,332	—	—	173	4,055
Total assets	US$ in thousands	3,948,210	4,166,820	4,587,730	4,651,150	4,696,560	4,496,430	4,265,950	3,903,550	3,772,780	3,682,920	2,900,950	2,656,830	2,564,320	2,464,600	2,437,110	2,278,300	1,605,830	1,513,840	1,494,620	1,337,590
Debt-to-assets ratio		0.16	0.15	0.14	0.13	0.13	0.14	0.15	0.16	0.17	0.17	0.43	0.23	0.24	0.25	0.47	0.25	0.00	0.00	0.00	0.00

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $638,703K ÷ $3,948,210K
= 0.16

The debt-to-assets ratio of SolarEdge Technologies Inc has been relatively stable over the past few quarters, ranging between 0.13 and 0.17. This indicates that the company has maintained a conservative level of debt relative to its total assets during this period. However, there was a significant spike in the ratio to 0.43 in the fourth quarter of 2021, suggesting a temporary increase in debt levels compared to assets at that time. This spike could be a result of strategic decisions or specific financing activities during that period.

It is noteworthy that in the most recent quarter, the debt-to-assets ratio dropped to 0.14, reflecting a decrease in the company's reliance on debt to fund its operations. The trend of decreasing debt ratios from the peak in Q4 2021 to the current level indicates a favorable shift towards a more balanced capital structure and reduced financial risk. It would be important to monitor future trends in the debt-to-assets ratio to assess the company's ongoing financial health and risk management.