SolarEdge Technologies Inc (SEDG)

Debt-to-equity ratio

		Dec 31, 2024	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
Long-term debt	US$ in thousands	330,006	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	—	—
Total stockholders’ equity	US$ in thousands	658,342	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
Debt-to-equity ratio		0.50	0.34	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

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 shown fluctuations over the years, indicating changes in the company's capital structure and financial leverage. From December 31, 2020, where the ratio was at 1.06, indicating higher reliance on debt compared to equity, there was a decrease in the ratio to 0.27 as of March 31, 2023. This decline suggests a reduction in the proportion of debt financing relative to equity within the company.

Subsequently, the ratio remained relatively stable around the 0.25 to 0.34 range from June 30, 2023, to September 30, 2024, indicating a balanced mix of debt and equity in the company's capital structure. Overall, the trend in the debt-to-equity ratio of SolarEdge Technologies Inc shows a movement towards a more conservative financing approach with a decreasing reliance on debt, which may be perceived positively by investors and creditors as it potentially lowers the company's financial risk.