SolarEdge Technologies Inc (SEDG)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -588,194 -277,654 40,205 272,623 373,756 259,410 166,120 212,321 194,328 213,875 207,139 195,697 159,677 134,083 157,730 178,662 214,285 229,673 189,946 104,642
Interest expense (ttm) US$ in thousands 15,802 15,802 39,351 31,724 56,682 70,993 52,893 52,619 19,760 6,175 1,450 6,239 6,407 5,934 5,330 5,303 5,147 4,909 4,746 1,278
Interest coverage -37.22 -17.57 1.02 8.59 6.59 3.65 3.14 4.04 9.83 34.64 142.85 31.37 24.92 22.60 29.59 33.69 41.63 46.79 40.02 81.88

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-588,194K ÷ $15,802K
= -37.22

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.

Looking at SolarEdge Technologies Inc's interest coverage ratio over the past few quarters, we see a significant fluctuation. The company experienced negative interest coverage in recent quarters, indicating that its operating income was insufficient to cover its interest expenses.

Specifically, in June 2024 and March 2024, the interest coverage ratios were -37.22 and -17.57, respectively, which suggest a concerning trend of inadequate coverage of interest payments by operating income.

However, in previous periods, such as December 2023 to September 2023, the interest coverage ratios were positive, indicating that the company had improved its ability to cover interest expenses with its operating income.

It is important to note the substantial improvement in the interest coverage ratio from March 2022 to June 2022, where the ratio increased significantly from 34.64 to 46.79, showing a strong ability to cover interest expenses during that period.

Overall, SolarEdge Technologies Inc's interest coverage ratio has shown variability over the past quarters, with some periods of strong coverage and others of insufficient coverage. It is crucial for the company to sustain a healthy interest coverage ratio to ensure its financial stability and ability to meet its debt obligations.


Peer comparison

Jun 30, 2024


See also:

SolarEdge Technologies Inc Interest Coverage (Quarterly Data)