SolarEdge Technologies Inc (SEDG)

Debt-to-equity 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-equity ratio		0.30	0.28	0.26	0.25	0.25	0.27	0.29	0.30	0.31	0.31	0.95	0.50	0.53	0.56	1.06	0.55	0.00	0.00	0.00	0.01

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $638,703K ÷ $2,106,190K
= 0.30

The debt-to-equity ratio for SolarEdge Technologies Inc has shown a decreasing trend over the past quarters, indicating a strengthening financial position in terms of debt management. As of Jun 30, 2024, the ratio stands at 0.30, which suggests that the company relies more on equity financing rather than debt to fund its operations and growth. This signifies a lower level of financial risk as the company has a relatively lower proportion of debt in its capital structure compared to equity.

Looking back at historical data, there was a significant spike in the debt-to-equity ratio in Dec 31, 2021, with a ratio of 0.95, indicating a higher reliance on debt financing at that period. However, since then, the company has been successful in reducing its debt levels and improving its financial leverage. It is worth noting that the ratios for the quarters of 2020 and 2019 were substantially lower, with some indicating minimal to zero debt, showcasing the company's ability to manage its capital structure effectively.

Overall, the decreasing trend in the debt-to-equity ratio for SolarEdge Technologies Inc reflects a positive financial trajectory, demonstrating prudent financial management practices and a healthier balance between debt and equity in the company's capital structure.