SolarEdge Technologies Inc (SEDG)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	658,342	2,411,910	2,176,370	1,310,040	1,085,760
Debt-to-capital ratio		0.33	0.21	0.22	0.49	0.51

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $330,006K ÷ ($330,006K + $658,342K)
= 0.33

The debt-to-capital ratio for SolarEdge Technologies Inc has shown a declining trend over the years, indicating a decreasing reliance on debt to finance its operations relative to its total capital structure.

As of December 31, 2020, the ratio stood at 0.51, slightly higher compared to the subsequent years. By December 31, 2021, the ratio decreased to 0.49, showing a slight improvement in the company's ability to manage its debt levels. This downward trend continued into the following years, reaching 0.22 by December 31, 2022, and further dropping to 0.21 by December 31, 2023, signaling a more conservative approach to debt management by the company.

However, by December 31, 2024, the debt-to-capital ratio increased slightly to 0.33, implying a potential increase in debt relative to total capital. It is important to monitor this ratio in the future to ensure that the company maintains a healthy balance between debt and equity financing to support its growth and financial stability.