SolarEdge Technologies Inc (SEDG)

Financial leverage ratio

		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	Dec 31, 2019
Total assets	US$ in thousands	2,816,390	3,948,210	4,166,820	4,587,730	4,651,150	4,696,560	4,496,430	4,265,950	3,903,550	3,772,780	3,682,920	2,900,950	2,656,830	2,564,320	2,464,600	2,437,110	2,278,300	1,605,830	1,513,840	1,494,620
Total stockholders’ equity	US$ in thousands	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	811,670
Financial leverage ratio		2.94	1.87	1.86	1.90	1.87	1.86	1.91	1.96	1.90	1.86	1.83	2.21	2.14	2.18	2.24	2.24	2.21	1.74	1.75	1.84

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,816,390K ÷ $956,366K
= 2.94

The financial leverage ratio for SolarEdge Technologies Inc has fluctuated over the past few years, ranging from a low of 1.74 to a high of 2.94. The ratio indicates the company's level of financial leverage or the extent to which it relies on debt financing. A higher financial leverage ratio suggests a higher level of debt relative to equity in the company's capital structure.

From the data provided, it is evident that SolarEdge's financial leverage has experienced some variability, indicating changes in the company's debt levels relative to its equity. The ratio peaked at 2.94 in September 2024, which may indicate a higher reliance on debt financing at that point in time. Conversely, the ratio decreased to a low of 1.74 in September 2020, suggesting a lower level of debt relative to equity during that period.

Overall, a trend analysis of the financial leverage ratio for SolarEdge Technologies Inc shows some fluctuations over the past few years, with the company managing its debt and equity structure to support its financial position and growth objectives. It is important for stakeholders to monitor the financial leverage ratio over time to assess the company's ability to meet its debt obligations and optimize its capital structure for long-term sustainability.