SolarEdge Technologies Inc (SEDG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.15 | 0.14 | 0.13 | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.17 | 0.43 | 0.23 | 0.24 | 0.25 | 0.47 | 0.25 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.23 | 0.22 | 0.21 | 0.20 | 0.20 | 0.21 | 0.22 | 0.23 | 0.24 | 0.24 | 0.49 | 0.33 | 0.34 | 0.36 | 0.51 | 0.36 | 0.00 | 0.00 | 0.00 | 0.01 |
| Debt-to-equity ratio | 0.30 | 0.28 | 0.26 | 0.25 | 0.25 | 0.27 | 0.29 | 0.30 | 0.31 | 0.31 | 0.95 | 0.50 | 0.53 | 0.56 | 1.06 | 0.55 | 0.00 | 0.00 | 0.00 | 0.01 |
| 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 |
The solvency ratios of SolarEdge Technologies Inc indicate the company's ability to meet its long-term financial obligations. Over the past quarters, the debt-to-assets ratio has been relatively stable, ranging between 0.13 to 0.17, suggesting that the company has maintained a conservative level of debt relative to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also shown consistency, with values ranging between 0.20 to 0.24 and 0.25 to 0.31 respectively. These ratios indicate that the company's capital structure is primarily composed of equity, providing a buffer against financial risks associated with high debt levels.
The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, has fluctuated slightly but has generally been within an acceptable range of 1.83 to 2.24. This suggests that the company has managed its leverage effectively, striking a balance between debt and equity financing to support its operations.
Overall, the solvency ratios of SolarEdge Technologies Inc reflect a sound financial position, with a prudent approach to debt management and a relatively stable capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Based on the data provided for SolarEdge Technologies Inc, the interest coverage ratio has fluctuated significantly over the past periods, ranging from negative values to considerably high positive values. This indicates fluctuations in the company's ability to cover its interest expenses with its operating earnings.
In the most recent period, the interest coverage ratio was -37.22, indicating that the company's earnings were insufficient to cover its interest expenses. This is a concerning sign as it suggests that the company may be struggling to meet its interest obligations.
On the other hand, the interest coverage ratio has shown improvement in previous periods, reaching as high as 142.85. This suggests a strong ability to cover interest expenses with operating earnings in those periods.
Overall, SolarEdge Technologies Inc's interest coverage ratios have shown volatility, with both low and high values. Investors and analysts should closely monitor the trend in interest coverage ratios to assess the company's financial health and ability to meet its debt obligations.