SolarEdge Technologies Inc (SEDG)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	732,012
Debt-to-capital ratio		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	0.01

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $638,703K ÷ ($638,703K + $2,106,190K)
= 0.23

The debt-to-capital ratio for SolarEdge Technologies Inc has shown fluctuation over the past several quarters. As of June 30, 2024, the ratio stands at 0.23, indicating that around 23% of the company's capital is funded by debt.

Looking back at the trend, we observe that the ratio has generally been below 0.25 in recent periods, suggesting that SolarEdge has been maintaining a conservative approach towards debt financing. However, there was a notable spike in the ratio in the fourth quarter of 2021, where it surged to 0.49, before subsequently dropping back down in the following quarters.

Overall, the company's debt-to-capital ratio has displayed relative stability in the moderate range, signifying a balanced mix of debt and equity in the company's capital structure. Future monitoring of this ratio will be essential to assess the company's leverage position and financial risk management.