SolarEdge Technologies Inc (SEDG)

Financial leverage 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
Total assets	US$ in thousands	2,630,200	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
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
Financial leverage ratio		4.00	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

December 31, 2024 calculation

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

SolarEdge Technologies Inc's financial leverage ratio has shown fluctuations over the past few years. The ratio was relatively stable around 1.75 to 1.74 in the first half of 2020. However, there was a significant increase in leverage by the end of 2020 and beginning of 2021, reaching 2.24. This higher leverage level was sustained through mid-2022, after which the ratio started to decline gradually.

The company's financial leverage ratio decreased to 1.86 by mid-2023 but picked up slightly to 2.94 by the end of September 2024, and further increased to 4.00 by the end of December 2024. Such a sharp increase in leverage towards the end of 2024 indicates a significant rise in the company's debt relative to its equity.

Overall, SolarEdge Technologies Inc's financial leverage ratio has shown some volatility, indicating changes in the company's capital structure and debt management strategies. Investors and stakeholders may need to closely monitor the trend in this ratio to assess the company's risk and financial health.