SolarEdge Technologies Inc (SEDG)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,587,730	4,265,950	2,900,950	2,437,110	1,494,620
Total stockholders’ equity	US$ in thousands	2,411,910	2,176,370	1,310,040	1,085,760	811,670
Financial leverage ratio		1.90	1.96	2.21	2.24	1.84

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,587,730K ÷ $2,411,910K
= 1.90

The financial leverage ratio of Solaredge Technologies Inc has shown a fluctuating trend over the past five years. The ratio declined from 2.24 in 2020 to 1.84 in 2019, indicating a decrease in financial leverage during that period. However, the ratio started to increase again in 2021, reaching 2.21, and continuing to rise to 2.24 in 2022.

In the most recent year, as of Dec 31, 2023, the financial leverage ratio decreased slightly to 1.90. This suggests that the company's reliance on debt to finance its operations has moderated compared to the previous year. The decreasing trend in financial leverage ratio could indicate a more conservative approach to financing, potentially reducing financial risk but also limiting the company's ability to leverage debt for growth opportunities.

Overall, the varying levels of the financial leverage ratio over the years reflect the company's changing capital structure and risk profile, signaling potential shifts in its financing strategy and financial health.