SolarEdge Technologies Inc (SEDG)

Financial leverage 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
Total assets	US$ in thousands	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	1,337,590
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
Financial leverage ratio		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	1.83

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,948,210K ÷ $2,106,190K
= 1.87

The financial leverage ratio of SolarEdge Technologies Inc has exhibited fluctuations over the past several quarters. The ratio has generally ranged between 1.74 and 2.24, indicating changes in the company's level of debt relative to its equity.

From December 2021 to June 2022, there was a notable increase in the financial leverage ratio, peaking at 2.24 before gradually decreasing in the following quarters. This suggests that the company might have taken on more debt during that period to finance its operations or growth initiatives.

The ratio then fluctuated between 1.83 and 1.96 between March 2022 and March 2023, indicating a relatively stable level of leverage during that time. However, there was a slight uptick in the ratio towards the end of the period, which may warrant further investigation into the company's capital structure and debt management practices.

Overall, the financial leverage ratio of SolarEdge Technologies Inc has shown variability, with a general trend of remaining above 1.80, which implies a higher reliance on debt financing compared to equity. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to meet its financial obligations and manage its debt levels effectively.