Stock Analysis on Net

SolarEdge Technologies Inc. (NASDAQ:SEDG)

This company has been moved to the archive! The financial data has not been updated since February 22, 2023.

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

SolarEdge Technologies Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 4,265,949 2,892,060 2,437,109 1,494,624 964,472
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 19,814
Total assets (adjusted) 4,265,949 2,892,060 2,437,109 1,494,624 984,286
Adjustment to Total Debt
Total debt (as reported) 673,099 663,918 601,209 2,630
Add: Operating lease liability (before adoption of FASB Topic 842)2 19,814
Add: Short-term operating lease liabilities 16,183 12,728 10,994 9,590
Add: Long-term operating lease liabilities 46,256 38,912 35,194 30,213
Total debt (adjusted) 735,538 715,558 647,397 42,433 19,814

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1, 2 Equal to total present value of future operating lease payments.


SolarEdge Technologies Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

SolarEdge Technologies Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Total Asset Turnover1
Reported total asset turnover 0.73 0.68 0.60 0.95 0.97
Adjusted total asset turnover 0.73 0.68 0.60 0.95 0.95
Debt to Equity2
Reported debt to equity 0.31 0.51 0.55 0.00 0.00
Adjusted debt to equity 0.34 0.55 0.60 0.05 0.04
Return on Assets3 (ROA)
Reported ROA 2.20% 5.85% 5.76% 9.81% 13.36%
Adjusted ROA 2.20% 5.85% 5.76% 9.81% 13.09%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. SolarEdge Technologies Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. SolarEdge Technologies Inc. adjusted debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. SolarEdge Technologies Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

SolarEdge Technologies Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Revenues 3,110,279 1,963,865 1,459,271 1,425,660 937,237
Total assets 4,265,949 2,892,060 2,437,109 1,494,624 964,472
Activity Ratio
Total asset turnover1 0.73 0.68 0.60 0.95 0.97
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Revenues 3,110,279 1,963,865 1,459,271 1,425,660 937,237
Adjusted total assets 4,265,949 2,892,060 2,437,109 1,494,624 984,286
Activity Ratio
Adjusted total asset turnover2 0.73 0.68 0.60 0.95 0.95

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 3,110,279 ÷ 4,265,949 = 0.73

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 3,110,279 ÷ 4,265,949 = 0.73

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. SolarEdge Technologies Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total debt 673,099 663,918 601,209 2,630
Total SolarEdge Technologies, Inc. stockholders’ equity 2,176,366 1,310,039 1,085,757 811,670 562,408
Solvency Ratio
Debt to equity1 0.31 0.51 0.55 0.00 0.00
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 735,538 715,558 647,397 42,433 19,814
Total SolarEdge Technologies, Inc. stockholders’ equity 2,176,366 1,310,039 1,085,757 811,670 562,408
Solvency Ratio
Adjusted debt to equity2 0.34 0.55 0.60 0.05 0.04

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Debt to equity = Total debt ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 673,099 ÷ 2,176,366 = 0.31

2 Adjusted debt to equity = Adjusted total debt ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 735,538 ÷ 2,176,366 = 0.34

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. SolarEdge Technologies Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to SolarEdge Technologies, Inc. 93,779 169,170 140,322 146,549 128,833
Total assets 4,265,949 2,892,060 2,437,109 1,494,624 964,472
Profitability Ratio
ROA1 2.20% 5.85% 5.76% 9.81% 13.36%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net income attributable to SolarEdge Technologies, Inc. 93,779 169,170 140,322 146,549 128,833
Adjusted total assets 4,265,949 2,892,060 2,437,109 1,494,624 984,286
Profitability Ratio
Adjusted ROA2 2.20% 5.85% 5.76% 9.81% 13.09%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income attributable to SolarEdge Technologies, Inc. ÷ Total assets
= 100 × 93,779 ÷ 4,265,949 = 2.20%

2 Adjusted ROA = 100 × Net income attributable to SolarEdge Technologies, Inc. ÷ Adjusted total assets
= 100 × 93,779 ÷ 4,265,949 = 2.20%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. SolarEdge Technologies Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.