SolarEdge Technologies Inc (SEDG)

Debt-to-capital ratio

		Sep 30, 2024	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
Long-term debt	US$ in thousands	329,614	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
Total stockholders’ equity	US$ in thousands	956,366	2,106,190	2,240,550	2,411,910	2,490,410	2,520,190	2,350,790	2,176,370	2,052,130	2,027,530	2,010,520	1,310,040	1,242,080	1,177,790	1,099,920	1,085,760	1,032,040	924,801	866,418	811,670
Debt-to-capital ratio		0.26	0.23	0.22	0.21	0.20	0.20	0.21	0.22	0.23	0.24	0.24	0.49	0.33	0.34	0.36	0.51	0.36	0.00	0.00	0.00

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $329,614K ÷ ($329,614K + $956,366K)
= 0.26

The debt-to-capital ratio of SolarEdge Technologies Inc has been exhibiting a decreasing trend over the past few quarters. This ratio, which represents the proportion of the company's capital structure funded by debt, stood at 0.26 as of September 30, 2024, indicating that 26% of the company's capital was financed by debt.

The decreasing trend in the debt-to-capital ratio suggests that SolarEdge Technologies Inc has been relying less on debt to finance its operations and growth. This can be seen as a positive indicator as lower reliance on debt could reduce the company's financial risk and decrease its interest expenses.

It is worth noting that the debt-to-capital ratio was relatively high in the past, reaching as high as 0.51 in December 31, 2020. However, the company has managed to significantly reduce its debt levels since then, as evidenced by the continuous decline in the ratio.

Overall, the decreasing trend in SolarEdge Technologies Inc's debt-to-capital ratio indicates a positive shift towards a more balanced and sustainable capital structure, which could enhance the company's financial stability and resilience in the long run.