SolarEdge Technologies Inc (SEDG)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	2,630,200	4,587,730	4,265,950	2,900,950	2,437,110
Total stockholders’ equity	US$ in thousands	658,342	2,411,910	2,176,370	1,310,040	1,085,760
Financial leverage ratio		4.00	1.90	1.96	2.21	2.24

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,630,200K ÷ $658,342K
= 4.00

The financial leverage ratio of SolarEdge Technologies Inc has shown a slight decrease from 2.24 in December 2020 to 2.21 in December 2021. This ratio further decreased to 1.96 by December 2022 and then to 1.90 by December 2023, indicating a trend towards lower leverage levels. However, the ratio increased significantly to 4.00 by December 2024, suggesting a substantial increase in financial leverage at the end of the period. It is essential for investors and stakeholders to monitor this ratio closely, as higher leverage can amplify both returns and risks for the company.