SolarEdge Technologies Inc (SEDG)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	2,411,910	2,176,370	1,310,040	1,085,760	811,670
Debt-to-equity ratio		0.26	0.29	0.95	1.06	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $627,381K ÷ $2,411,910K
= 0.26

Solaredge Technologies Inc's debt-to-equity ratio has shown a decreasing trend over the past five years, indicating a relatively lower reliance on debt financing compared to equity. In 2019, the company had a significantly low debt-to-equity ratio of 0.02, suggesting a conservative capital structure with minimal debt compared to equity. However, there was a notable increase in the ratio in the following years, reaching 0.57 by the end of 2020 and further declining to 0.51 in 2021.

The most recent data for 2023 shows a debt-to-equity ratio of 0.28, which signifies a continued trend of managing debt levels relative to equity. This decreasing ratio indicates that Solaredge Technologies has been actively reducing its debt burden in relation to equity in recent years, which could imply a stronger financial position and lower financial risk.

Overall, the declining debt-to-equity ratio trend suggests that Solaredge Technologies Inc has been effectively managing its leverage and maintaining a balanced capital structure, potentially enhancing its long-term financial stability and resilience.