SolarEdge Technologies Inc (SEDG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.12 | 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 |
| Debt-to-capital ratio | 0.26 | 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 |
| Debt-to-equity ratio | 0.34 | 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 |
| 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 |
The solvency ratios of SolarEdge Technologies Inc have shown fluctuations over the past several quarters. The debt-to-assets ratio has generally remained low, ranging from 0.12 to 0.17, indicating the company has maintained a conservative level of debt relative to its total assets.
Similarly, the debt-to-capital ratio has mostly stayed within the range of 0.20 to 0.26, suggesting that the company has been able to finance its operations primarily through equity capital rather than debt.
The debt-to-equity ratio has shown a moderate upward trend, increasing from 0.25 to 0.34, indicating a slight increase in leverage over time. However, the ratios have not reached alarming levels and remain within a reasonable range.
The financial leverage ratio has also fluctuated, with values ranging from 1.74 to 2.94. Although there have been fluctuations, the ratios have generally stayed below 3, indicating that the company has been effectively managing its financial leverage.
Overall, based on the solvency ratios, SolarEdge Technologies Inc appears to have a solid financial position with a conservative debt structure and manageable leverage levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -209.69 | -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 |
The interest coverage ratio for SolarEdge Technologies Inc has shown significant fluctuations over the past years. The ratio was negative in some periods, indicating that the company did not generate enough operating income to cover its interest expenses. This raises concerns about the company's ability to meet its debt obligations using its current earnings.
The negative interest coverage ratios suggest that the company may have been facing financial difficulties, as its operating income was insufficient to cover its interest expenses. However, the company showed some improvement in recent periods, with the ratio becoming positive. This indicates that the company's operating income has improved, providing better coverage of its interest expenses.
It is important for investors and stakeholders to closely monitor the interest coverage ratio of SolarEdge Technologies Inc to ensure that the company's financial health is sustainable and that it can meet its debt obligations comfortably in the future.