SolarEdge Technologies Inc (SEDG)

Debt-to-equity 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-equity ratio		0.50	0.26	0.29	0.95	1.06

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $330,006K ÷ $658,342K
= 0.50

The debt-to-equity ratio of SolarEdge Technologies Inc has displayed varying trends over the last five years. In December 2020, the ratio stood at 1.06, indicating that the company had more debt than equity. However, in the following years, the ratio decreased significantly to 0.95 in December 2021 and then further to 0.29 in December 2022. This declining trend suggests a reduction in the company's reliance on debt in comparison to equity, which is generally viewed positively by investors and creditors.

By December 2023, the debt-to-equity ratio had decreased slightly to 0.26, indicating that the company's reliance on debt relative to equity had fallen even further. However, there was a slight increase to 0.50 by December 2024, suggesting a moderate uptick in the usage of debt in the company's capital structure.

Overall, the downward trend in the debt-to-equity ratio from 2020 to 2022 reflects a strengthening financial position and reduced financial risk for SolarEdge Technologies Inc. Although there was a slight uptick in 2024, the ratio remains at a level that indicates a reasonable balance between debt and equity in the company's capital structure.