Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

SolarEdge Technologies Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	93,779)	169,170)	140,322)	144,957)	128,046)
Depreciation of property, plant and equipment	40,580)	29,359)	22,355)	17,261)	11,426)
Amortization of intangible assets	9,096)	10,176)	9,479)	9,634)	1,193)
Amortization of debt discount and debt issuance costs	2,916)	2,903)	3,185)	—)	—)
Amortization of premium and accretion of discount on available-for-sale marketable securities, net	9,310)	9,462)	1,168)	92)	1,242)
Impairment of goodwill and intangible assets	118,492)	—)	—)	—)	—)
Stock-based compensation expenses	145,539)	102,593)	67,309)	60,353)	30,618)
Gain from sale of privately held company	(7,719)	—)	—)	—)	—)
Deferred income taxes, net	(11,055)	(12,045)	(2,738)	(6,037)	(7,093)
Exchange rate fluctuations and other items, net	10,052)	20,697)	3,860)	8,174)	551)
Inventories, net	(341,085)	(43,051)	(149,661)	(22,544)	(20,178)
Prepaid expenses and other assets	(64,991)	(39,444)	(3,276)	(67,323)	(2,711)
Trade receivables, net	(457,610)	(247,723)	86,538)	(124,071)	(60,514)
Trade payables, net	194,524)	91,709)	3,333)	47,837)	31,482)
Employees and payroll accruals	26,238)	26,519)	18,315)	18,592)	4,583)
Warranty obligations	120,169)	60,524)	32,274)	50,780)	41,878)
Deferred revenues and customers advances	44,376)	29,936)	(21,438)	83,137)	37,041)
Accrued expenses and other liabilities, net	98,673)	3,344)	11,630)	38,158)	(8,485)
Changes in assets and liabilities	(379,706)	(118,186)	(22,285)	24,566)	23,096)
Adjustments to reconcile net income to net cash provided by operating activities	(62,495)	44,959)	82,333)	114,043)	61,033)
Net cash provided by operating activities	31,284)	214,129)	222,655)	259,000)	189,079)
Proceed from sales and maturities of available-for-sale marketable securities	231,210)	202,188)	141,839)	142,744)	129,345)
Purchase of property, plant and equipment	(169,341)	(149,251)	(126,790)	(72,562)	(38,608)
Investment in available-for-sale marketable securities	(507,171)	(579,377)	(223,705)	(160,054)	(142,627)
Investment in a privately-held company	—)	(16,643)	—)	—)	—)
Proceeds from sale of a privately-held company	24,362)	—)	—)	—)	—)
Withdrawal from (investment in) bank deposits, net	—)	60,096)	(54,752)	4,860)	(6,001)
Withdrawal from (investment in) restricted bank Deposits, net	(242)	798)	25,267)	(26,145)	—)
Business combinations, net of cash acquired	—)	—)	—)	(38,435)	(94,737)
Other investing activities	4,138)	(2,022)	1,504)	(3,261)	—)
Net cash used in investing activities	(417,044)	(484,211)	(236,637)	(152,853)	(152,628)
Proceeds from secondary public offering, net of issuance costs	650,526)	—)	—)	—)	—)
Repayment of bank loans	(138)	(16,073)	(15,595)	(9,514)	(3,786)
Proceeds from exercise of stock-based award	4,030)	6,486)	16,671)	9,066)	10,021)
Tax withholding in connection with stock-based awards, net	3,023)	(4,283)	4,829)	—)	—)
Proceeds from issuance of convertible senior notes, net	—)	—)	617,869)	—)	—)
Proceeds from bank loans	—)	—)	16,944)	249)	—)
Change in non-controlling interests	—)	—)	—)	(71,468)	(14,190)
Other financing activities	(2,834)	(1,308)	(234)	(1,354)	—)
Net cash provided by (used in) financing activities	654,607)	(15,178)	640,484)	(73,021)	(7,955)
Effect of exchange rate differences on cash and cash equivalents	(15,824)	(11,797)	(23,257)	3,011)	86)
Increase (decrease) in cash and cash equivalents	253,023)	(297,057)	603,245)	36,137)	28,582)
Cash and cash equivalents at the beginning of the period	530,089)	827,146)	223,901)	187,764)	164,679)
Cash and cash equivalents at the end of the period	783,112)	530,089)	827,146)	223,901)	193,261)

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).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	SolarEdge Technologies Inc. net cash provided by operating activities decreased from 2020 to 2021 and from 2021 to 2022.
Net cash used in investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	SolarEdge Technologies Inc. net cash used in investing activities decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	SolarEdge Technologies Inc. net cash provided by (used in) financing activities decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

SolarEdge Technologies Inc. (NASDAQ:SEDG)

Cash Flow Statement