Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
SolarEdge Technologies Inc., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The financial leverage ratio demonstrates an overall increasing trend throughout the periods observed. Starting at 1.66 in the first quarter of 2018, it shows minor fluctuations but grows steadily, reaching a peak of 2.24 during the fourth quarter of 2020 and first quarter of 2021. After this peak, the ratio experiences slight variations but remains elevated, finishing at 1.96 by the end of 2022. This trend indicates a gradually higher reliance on debt relative to equity over time, although the slight decline from the peak suggests some moderation in leverage in the latter periods.
The debt to equity ratio, reported only from the fourth quarter of 2020 onward, generally decreases over time. Beginning at 0.55 in the last quarter of 2020, the ratio remains relatively stable through mid-2021, fluctuating near 0.55 to 0.59. From the last quarter of 2021, it exhibits a downward movement, reaching 0.31 by the end of 2022. This decline points to a reduction in debt relative to shareholder equity, implying an improved equity base or debt reduction strategies in recent quarters.
When including operating lease liabilities, the debt to equity ratio displays a similar but slightly elevated pattern. With initial values around 0.58 to 0.62 in late 2020, the ratio decreases noticeably over subsequent quarters, declining to 0.33 by the end of 2022. The inclusion of operating leases initially inflates the debt ratio but does not change the downward trend, reflecting consistent efforts to reduce overall leverage including lease obligations.
Debt to capital ratios, both including and excluding operating lease liabilities, show a comparable declining trajectory. Excluding operating leases, the ratio was around 0.36 at the end of 2020 and dropped to 0.24 by the close of 2022. Including operating leases, the ratio starts slightly higher at about 0.37 and declines to 0.25 over the same timeframe. These patterns underline a strengthening capital structure with less dependency on debt financing relative to total capital employed.
Similarly, debt to assets ratios indicate a decrease in leverage relative to total assets. Without operating leases, the ratio moved from about 0.25 in late 2020 to 0.16 at the end of 2022. Including operating leases, the ratio fell from approximately 0.26 to 0.17 over the same period. This diminishing ratio suggests enhanced asset coverage and a strategic reduction in debt obligations in proportion to the company's asset base.
Overall, the data manifest a trend of moderated leverage and improved capital structure from late 2020 through 2022. While financial leverage ratios increased steadily until late 2020, subsequent periods show a company progressively lowering its debt burdens relative to equity, capital, and assets. This shift signifies a cautious approach towards debt and potentially a focus on risk management and balance sheet optimization during recent quarters.
Debt Ratios
Debt to Equity
SolarEdge Technologies Inc., debt to equity calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Convertible senior notes, net | 624,451) | 623,721) | 622,991) | 622,263) | 621,535) | 620,808) | 620,082) | 619,357) | 573,350) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term finance lease liabilities | 45,385) | 45,509) | 46,680) | 53,405) | 40,508) | 25,375) | 25,525) | 24,918) | 26,173) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 669,836) | 669,230) | 669,671) | 675,668) | 662,043) | 646,183) | 645,607) | 644,275) | 599,523) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 2,052,127) | 2,027,532) | 2,010,525) | 1,310,039) | 1,242,083) | 1,177,793) | 1,099,924) | 1,085,757) | 1,032,037) | 924,801) | 866,418) | 811,670) | 732,012) | 674,071) | 626,319) | 562,408) | 538,963) | 484,891) | 440,211) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity1 | 0.31 | 0.33 | 0.33 | 0.34 | 0.51 | 0.52 | 0.55 | 0.59 | 0.55 | 0.55 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.05 | 0.05 | 0.05 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.06 | 0.10 | 0.21 | 0.16 | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 0.18 | 0.17 | 0.17 | 0.17 | 0.18 | 0.42 | 0.42 | 0.43 | 0.43 | 0.47 | 0.48 | 0.47 | 0.47 | 0.48 | 0.51 | 0.54 | — | — | — | — | ||||||
| Applied Materials Inc. | 0.45 | 0.45 | 0.47 | 0.46 | 0.45 | 0.45 | 0.45 | 0.47 | 0.52 | 0.57 | 0.76 | 0.61 | 0.65 | 0.65 | 0.65 | 0.65 | — | — | — | — | ||||||
| Broadcom Inc. | 1.74 | 1.89 | 1.88 | 1.72 | 1.59 | 1.66 | 1.69 | 1.75 | 1.72 | 1.87 | 1.92 | 1.84 | 1.32 | 1.75 | 1.69 | 1.62 | — | — | — | — | ||||||
| Intel Corp. | 0.41 | 0.40 | 0.35 | 0.36 | 0.40 | 0.45 | 0.42 | 0.45 | 0.45 | 0.49 | 0.47 | 0.52 | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 4.75 | 0.91 | 0.85 | 0.89 | 1.02 | 1.11 | 1.18 | 1.25 | 1.30 | 1.49 | 1.27 | 1.29 | 1.29 | 1.20 | 1.40 | 1.43 | — | — | — | — | ||||||
| Lam Research Corp. | 0.80 | 0.83 | 0.77 | 0.86 | 0.83 | 1.08 | 1.06 | 1.08 | 1.12 | 1.12 | 1.01 | 0.90 | 0.96 | 0.90 | 0.35 | 0.44 | — | — | — | — | ||||||
| Micron Technology Inc. | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.15 | 0.15 | 0.16 | 0.14 | 0.18 | 0.12 | — | — | — | — | ||||||
| NVIDIA Corp. | 0.41 | 0.46 | 0.56 | 0.37 | 0.41 | 0.45 | 0.50 | 0.53 | 0.16 | 0.18 | 0.19 | 0.20 | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 0.86 | 0.97 | 1.18 | 1.39 | 1.58 | 1.92 | 2.12 | 2.13 | 2.59 | 4.82 | 5.24 | 3.53 | 3.25 | 3.01 | 4.24 | 4.53 | — | — | — | — | ||||||
| Texas Instruments Inc. | 0.60 | 0.55 | 0.51 | 0.55 | 0.58 | 0.64 | 0.56 | 0.61 | 0.74 | 0.82 | 0.89 | 0.85 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Debt to equity = Total debt ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 669,836 ÷ 2,176,366 = 0.31
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits a consistent increase from approximately 570 million USD in the first quarter of 2020 through to the end of 2022, where it stabilizes at around 670 million USD. This suggests a pattern of incremental borrowing or long-term financing during this period, with the debt level reaching a plateau in the latter quarters of 2022.
- Total Stockholders’ Equity
- Stockholders’ equity shows a steady upward trajectory from 440 million USD in the first quarter of 2018 to over 2.17 billion USD by the end of 2022. The growth is continuous and accelerating, particularly from 2021 onward, indicating significant retained earnings accumulation, equity financing, or valuation gains that contribute to the company's increasing net worth.
- Debt to Equity Ratio
- The debt to equity ratio is available from the last quarter of 2019 onward and remains below 0.6 throughout this period. It starts at approximately 0.55 in late 2019 and gradually declines to about 0.31 by the end of 2022. This trend reflects a strengthening equity base relative to debt, implying enhanced financial stability and a lower reliance on leverage.
- Overall Financial Position
- The data indicate a strategy focusing on equity growth while maintaining moderate levels of debt. The decline in the debt to equity ratio despite increasing absolute debt levels underscores a more rapid increase in equity capital. This improved capital structure potentially reduces financial risk and enhances the company’s ability to fund operations and growth initiatives internally or through equity markets.
Debt to Equity (including Operating Lease Liability)
SolarEdge Technologies Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Convertible senior notes, net | 624,451) | 623,721) | 622,991) | 622,263) | 621,535) | 620,808) | 620,082) | 619,357) | 573,350) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term finance lease liabilities | 45,385) | 45,509) | 46,680) | 53,405) | 40,508) | 25,375) | 25,525) | 24,918) | 26,173) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 669,836) | 669,230) | 669,671) | 675,668) | 662,043) | 646,183) | 645,607) | 644,275) | 599,523) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term operating lease liabilities | 46,256) | 46,398) | 42,849) | 48,480) | 38,912) | 31,509) | 31,153) | 32,667) | 35,194) | 29,442) | 29,991) | 30,336) | 30,213) | 29,117) | 30,009) | 24,790) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 716,092) | 715,628) | 712,520) | 724,148) | 700,955) | 677,692) | 676,760) | 676,942) | 634,717) | 599,774) | 29,991) | 30,336) | 30,213) | 29,117) | 30,009) | 24,790) | —) | —) | —) | —) | ||||||
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 2,052,127) | 2,027,532) | 2,010,525) | 1,310,039) | 1,242,083) | 1,177,793) | 1,099,924) | 1,085,757) | 1,032,037) | 924,801) | 866,418) | 811,670) | 732,012) | 674,071) | 626,319) | 562,408) | 538,963) | 484,891) | 440,211) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.33 | 0.35 | 0.35 | 0.36 | 0.54 | 0.55 | 0.57 | 0.62 | 0.58 | 0.58 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.05 | 0.05 | 0.06 | 0.04 | 0.09 | 0.08 | 0.08 | 0.09 | 0.09 | 0.15 | 0.27 | 0.23 | — | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.18 | 0.18 | 0.19 | 0.16 | 0.17 | 0.16 | 0.14 | 0.18 | 0.12 | — | — | — | — | ||||||
| NVIDIA Corp. | 0.44 | 0.49 | 0.60 | 0.40 | 0.45 | 0.49 | 0.54 | 0.57 | 0.21 | 0.22 | 0.24 | 0.25 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 716,092 ÷ 2,176,366 = 0.33
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- From the available data starting in March 2019, total debt shows a relatively stable level, fluctuating slightly around the range of approximately 24,790 to 30,336 thousand US dollars through June 2020. However, a significant surge is observed beginning in September 2020, with debt increasing drastically to 599,774 thousand US dollars and continuing to rise steadily to reach around 716,092 thousand US dollars by December 2022. This indicates a substantial increase in debt obligations over this period.
- Total Stockholders' Equity
- Stockholders' equity demonstrates consistent growth throughout the entire period from March 2018 to December 2022. Starting at 440,211 thousand US dollars in March 2018, equity sees a steady increase quarter over quarter, surpassing one million thousand US dollars by September 2020. The upward trend continues through 2021 and 2022, culminating at approximately 2,176,366 thousand US dollars by December 2022. This reflects a strong and continuous increase in the company’s net assets as reported to stockholders.
- Debt to Equity Ratio
- This ratio remains low and stable around 0.03 to 0.04 from March 2019 to June 2020, implying low leverage relative to equity during this timeframe. Following the sharp increase in total debt in late 2020, the ratio jumps to approximately 0.58-0.62, indicating a significant increase in leverage. Over the subsequent quarters through December 2022, the debt to equity ratio gradually decreases to around 0.33. Despite this reduction, the ratio remains higher than in earlier periods, suggesting that while leverage has moderated, the company operates with a substantially increased level of debt relative to equity compared to the pre-2020 period.
- Summary of Trends
- The data illustrates a marked shift in the company’s capital structure beginning in mid-2020, characterized by a large increase in total debt and a concurrent rise in leverage as measured by the debt to equity ratio. Despite this, stockholders’ equity has shown strong and consistent growth, rising more than fourfold over the analyzed period. The gradual decline in leverage after peaking may indicate active management of debt levels or growth in equity that outpaces debt accumulation. The overall financial position suggests an increasingly leveraged company that continues to expand its equity base, potentially supporting ongoing growth or investment strategies.
Debt to Capital
SolarEdge Technologies Inc., debt to capital calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Convertible senior notes, net | 624,451) | 623,721) | 622,991) | 622,263) | 621,535) | 620,808) | 620,082) | 619,357) | 573,350) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term finance lease liabilities | 45,385) | 45,509) | 46,680) | 53,405) | 40,508) | 25,375) | 25,525) | 24,918) | 26,173) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 669,836) | 669,230) | 669,671) | 675,668) | 662,043) | 646,183) | 645,607) | 644,275) | 599,523) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 2,052,127) | 2,027,532) | 2,010,525) | 1,310,039) | 1,242,083) | 1,177,793) | 1,099,924) | 1,085,757) | 1,032,037) | 924,801) | 866,418) | 811,670) | 732,012) | 674,071) | 626,319) | 562,408) | 538,963) | 484,891) | 440,211) | ||||||
| Total capital | 2,846,202) | 2,721,357) | 2,697,203) | 2,686,193) | 1,972,082) | 1,888,266) | 1,823,400) | 1,744,199) | 1,685,280) | 1,602,369) | 924,801) | 866,418) | 811,670) | 732,012) | 674,071) | 626,319) | 562,408) | 538,963) | 484,891) | 440,211) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital1 | 0.24 | 0.25 | 0.25 | 0.25 | 0.34 | 0.34 | 0.35 | 0.37 | 0.36 | 0.36 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.05 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.09 | 0.17 | 0.14 | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 0.15 | 0.15 | 0.14 | 0.14 | 0.15 | 0.30 | 0.30 | 0.30 | 0.30 | 0.32 | 0.33 | 0.32 | 0.32 | 0.33 | 0.34 | 0.35 | — | — | — | — | ||||||
| Applied Materials Inc. | 0.31 | 0.31 | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.32 | 0.34 | 0.36 | 0.43 | 0.38 | 0.39 | 0.40 | 0.39 | 0.39 | — | — | — | — | ||||||
| Broadcom Inc. | 0.64 | 0.65 | 0.65 | 0.63 | 0.61 | 0.62 | 0.63 | 0.64 | 0.63 | 0.65 | 0.66 | 0.65 | 0.57 | 0.64 | 0.63 | 0.62 | — | — | — | — | ||||||
| Intel Corp. | 0.29 | 0.28 | 0.26 | 0.27 | 0.29 | 0.31 | 0.29 | 0.31 | 0.31 | 0.33 | 0.32 | 0.34 | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 0.83 | 0.48 | 0.46 | 0.47 | 0.50 | 0.52 | 0.54 | 0.55 | 0.57 | 0.60 | 0.56 | 0.56 | 0.56 | 0.55 | 0.58 | 0.59 | — | — | — | — | ||||||
| Lam Research Corp. | 0.44 | 0.45 | 0.44 | 0.46 | 0.45 | 0.52 | 0.51 | 0.52 | 0.53 | 0.53 | 0.50 | 0.47 | 0.49 | 0.47 | 0.26 | 0.31 | — | — | — | — | ||||||
| Micron Technology Inc. | 0.12 | 0.12 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.13 | 0.13 | 0.14 | 0.12 | 0.15 | 0.11 | — | — | — | — | ||||||
| NVIDIA Corp. | 0.29 | 0.32 | 0.36 | 0.27 | 0.29 | 0.31 | 0.33 | 0.35 | 0.14 | 0.15 | 0.16 | 0.17 | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 0.46 | 0.49 | 0.54 | 0.58 | 0.61 | 0.66 | 0.68 | 0.68 | 0.72 | 0.83 | 0.84 | 0.78 | 0.76 | 0.75 | 0.81 | 0.82 | — | — | — | — | ||||||
| Texas Instruments Inc. | 0.37 | 0.35 | 0.34 | 0.36 | 0.37 | 0.39 | 0.36 | 0.38 | 0.43 | 0.45 | 0.47 | 0.46 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 669,836 ÷ 2,846,202 = 0.24
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's capital structure over the observed periods, particularly from 2020 onwards where more complete data is available.
- Total debt
- From the point data starts being reported in 2020 Q1, total debt exhibits a generally increasing trend, rising from approximately $570 million to around $670 million by the end of 2022. There is a steady accumulation of debt through this period, although the growth rate appears to decelerate somewhat in the final quarters.
- Total capital
- Total capital shows a consistent upward trajectory from 2018 onwards, with a marked acceleration starting in 2020 Q3. The capital base more than doubles between 2020 Q3 and 2022 Q4, growing from around $1.6 billion to nearly $2.85 billion. This rapid capital expansion outpaces the growth in total debt, indicating an increasing infusion of equity or other non-debt capital components.
- Debt to capital ratio
- The debt to capital ratio is available starting in 2020 Q3 and shows a declining trend from 0.36 to 0.24 by the end of 2022. This decreasing ratio suggests a relative reduction in leverage over time, reflecting the faster growth of total capital compared to total debt. The decline indicates an improved capital structure with less reliance on debt financing as a proportion of the capital base.
Overall, these patterns imply that while the company maintains and gradually increases its debt levels, it significantly strengthens its capital base, thereby reducing its leverage. This trend points toward a more conservative financial stance with enhanced equity financing or retained earnings contributing to capital growth, potentially improving financial stability and flexibility.
Debt to Capital (including Operating Lease Liability)
SolarEdge Technologies Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Convertible senior notes, net | 624,451) | 623,721) | 622,991) | 622,263) | 621,535) | 620,808) | 620,082) | 619,357) | 573,350) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term finance lease liabilities | 45,385) | 45,509) | 46,680) | 53,405) | 40,508) | 25,375) | 25,525) | 24,918) | 26,173) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 669,836) | 669,230) | 669,671) | 675,668) | 662,043) | 646,183) | 645,607) | 644,275) | 599,523) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term operating lease liabilities | 46,256) | 46,398) | 42,849) | 48,480) | 38,912) | 31,509) | 31,153) | 32,667) | 35,194) | 29,442) | 29,991) | 30,336) | 30,213) | 29,117) | 30,009) | 24,790) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 716,092) | 715,628) | 712,520) | 724,148) | 700,955) | 677,692) | 676,760) | 676,942) | 634,717) | 599,774) | 29,991) | 30,336) | 30,213) | 29,117) | 30,009) | 24,790) | —) | —) | —) | —) | ||||||
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 2,052,127) | 2,027,532) | 2,010,525) | 1,310,039) | 1,242,083) | 1,177,793) | 1,099,924) | 1,085,757) | 1,032,037) | 924,801) | 866,418) | 811,670) | 732,012) | 674,071) | 626,319) | 562,408) | 538,963) | 484,891) | 440,211) | ||||||
| Total capital (including operating lease liability) | 2,892,458) | 2,767,755) | 2,740,052) | 2,734,673) | 2,010,994) | 1,919,775) | 1,854,553) | 1,776,866) | 1,720,474) | 1,631,811) | 954,792) | 896,754) | 841,883) | 761,129) | 704,080) | 651,109) | 562,408) | 538,963) | 484,891) | 440,211) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.25 | 0.26 | 0.26 | 0.26 | 0.35 | 0.35 | 0.36 | 0.38 | 0.37 | 0.37 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.05 | 0.05 | 0.05 | 0.04 | 0.08 | 0.08 | 0.07 | 0.08 | 0.08 | 0.13 | 0.21 | 0.19 | — | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | 0.14 | 0.14 | 0.14 | 0.12 | 0.15 | 0.11 | — | — | — | — | ||||||
| NVIDIA Corp. | 0.31 | 0.33 | 0.37 | 0.29 | 0.31 | 0.33 | 0.35 | 0.36 | 0.17 | 0.18 | 0.19 | 0.20 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 716,092 ÷ 2,892,458 = 0.25
2 Click competitor name to see calculations.
The financial data reveals notable trends regarding debt levels, total capital, and the debt-to-capital ratio over the observed quarterly periods.
- Total Debt (including operating lease liability)
- Beginning in the first quarter of 2019, total debt was relatively stable, fluctuating around the 24,790 to 30,336 thousand US$ range through mid-2020. After June 2020, there is a significant increase in total debt, sharply rising to 599,774 thousand US$ and continuing to grow steadily each quarter thereafter, reaching approximately 716 million US$ by the end of 2022. This dramatic increase indicates a substantial change in the company's financing structure or capital acquisition approaches starting from mid-2020.
- Total Capital (including operating lease liability)
- Total capital shows a general upward trend throughout the period, increasing from approximately 440 million US$ in early 2018 to about 2.89 billion US$ by the end of 2022. The growth is consistent but particularly accelerated from mid-2020, coinciding with the sharp increase in total debt, suggesting significant capital expansion during this timeframe.
- Debt to Capital Ratio (including operating lease liability)
- This ratio remains very low and stable at around 0.03 to 0.04 from early 2019 until mid-2020, reflecting a low proportion of debt in the capital structure. However, starting in the third quarter of 2020, there is a noticeable leap to approximately 0.37, indicating a pronounced increase in leverage. Following this jump, the ratio slightly fluctuates but shows a declining trend toward 0.25 by the end of 2022. Despite the initial increase in leverage, the subsequent downward movement suggests a gradual deleveraging or better capital management post-2020.
Overall, the data indicates a period of relative stability in both total debt and the debt-to-capital ratio up until mid-2020. Afterwards, the company experienced a rapid increase in debt and overall capital, substantially altering its capital structure with higher leverage initially, followed by a trend toward modest reduction in leverage levels by the end of 2022. This shift could be attributed to strategic financing decisions, possibly involving large capital investments or acquisitions during the post-2020 period.
Debt to Assets
SolarEdge Technologies Inc., debt to assets calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Convertible senior notes, net | 624,451) | 623,721) | 622,991) | 622,263) | 621,535) | 620,808) | 620,082) | 619,357) | 573,350) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term finance lease liabilities | 45,385) | 45,509) | 46,680) | 53,405) | 40,508) | 25,375) | 25,525) | 24,918) | 26,173) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 669,836) | 669,230) | 669,671) | 675,668) | 662,043) | 646,183) | 645,607) | 644,275) | 599,523) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total assets | 4,265,949) | 3,903,546) | 3,772,778) | 3,682,915) | 2,892,060) | 2,656,833) | 2,564,325) | 2,464,595) | 2,437,109) | 2,278,296) | 1,605,826) | 1,513,840) | 1,494,624) | 1,337,592) | 1,221,694) | 1,176,923) | 964,472) | 852,178) | 783,230) | 731,561) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets1 | 0.16 | 0.17 | 0.18 | 0.18 | 0.23 | 0.24 | 0.25 | 0.26 | 0.25 | 0.25 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.05 | 0.10 | 0.08 | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 0.13 | 0.12 | 0.12 | 0.12 | 0.13 | 0.24 | 0.24 | 0.24 | 0.24 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.27 | 0.29 | — | — | — | — | ||||||
| Applied Materials Inc. | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | 0.24 | 0.26 | 0.31 | 0.27 | 0.28 | 0.28 | 0.28 | 0.28 | — | — | — | — | ||||||
| Broadcom Inc. | 0.54 | 0.55 | 0.55 | 0.54 | 0.53 | 0.53 | 0.54 | 0.54 | 0.54 | 0.56 | 0.56 | 0.55 | 0.49 | 0.54 | 0.53 | 0.52 | — | — | — | — | ||||||
| Intel Corp. | 0.23 | 0.23 | 0.21 | 0.21 | 0.23 | 0.24 | 0.23 | 0.24 | 0.24 | 0.25 | 0.25 | 0.27 | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 0.53 | 0.31 | 0.29 | 0.31 | 0.34 | 0.35 | 0.35 | 0.37 | 0.37 | 0.39 | 0.37 | 0.37 | 0.38 | 0.37 | 0.40 | 0.40 | — | — | — | — | ||||||
| Lam Research Corp. | 0.29 | 0.30 | 0.30 | 0.32 | 0.31 | 0.38 | 0.38 | 0.39 | 0.40 | 0.39 | 0.37 | 0.36 | 0.37 | 0.37 | 0.19 | 0.21 | — | — | — | — | ||||||
| Micron Technology Inc. | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.13 | 0.11 | 0.11 | 0.12 | 0.11 | 0.13 | 0.09 | — | — | — | — | ||||||
| NVIDIA Corp. | 0.25 | 0.27 | 0.31 | 0.23 | 0.24 | 0.26 | 0.28 | 0.30 | 0.11 | 0.13 | 0.13 | 0.14 | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 0.32 | 0.33 | 0.35 | 0.37 | 0.38 | 0.41 | 0.42 | 0.42 | 0.44 | 0.49 | 0.50 | 0.48 | 0.48 | 0.48 | 0.48 | 0.48 | — | — | — | — | ||||||
| Texas Instruments Inc. | 0.32 | 0.30 | 0.29 | 0.31 | 0.31 | 0.33 | 0.30 | 0.32 | 0.35 | 0.37 | 0.39 | 0.38 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 669,836 ÷ 4,265,949 = 0.16
2 Click competitor name to see calculations.
- Total Debt
- The recorded data on total debt begins from the quarter ending March 31, 2020, with a value of approximately 570 million US dollars, and shows a gradual increase over subsequent quarters. By December 31, 2022, total debt has risen to about 670 million US dollars. The incremental rise is steady with minor fluctuations, indicating a pattern of moderate borrowing or debt accumulation during this period.
- Total Assets
- Total assets demonstrate a consistent upward trajectory from March 31, 2018, through December 31, 2022. Starting at approximately 732 million US dollars in early 2018, assets nearly doubled by the end of 2019, reaching around 1.5 billion US dollars. A notable acceleration occurs in 2020, with assets climbing sharply from roughly 1.6 billion US dollars in March to over 2.4 billion US dollars by December. This growth continues steadily through 2021 and 2022, culminating in assets exceeding 4.2 billion US dollars by the end of 2022. This trend signifies robust asset accumulation, potentially reflecting expansion, investment, or appreciation in asset values.
- Debt to Assets Ratio
- Beginning from the March 31, 2020 quarter, the debt to assets ratio remains relatively stable around the 0.24 to 0.26 range initially. However, over the subsequent quarters, there is a noticeable decline in this ratio, dropping to approximately 0.16 by December 31, 2022. This decrease suggests that asset growth has outpaced the growth in debt, improving the company's leverage position. The declining ratio indicates reduced financial risk and potentially better solvency, reflecting prudent financial management or stronger operational performance leading to asset build-up relative to liabilities.
Debt to Assets (including Operating Lease Liability)
SolarEdge Technologies Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Convertible senior notes, net | 624,451) | 623,721) | 622,991) | 622,263) | 621,535) | 620,808) | 620,082) | 619,357) | 573,350) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term finance lease liabilities | 45,385) | 45,509) | 46,680) | 53,405) | 40,508) | 25,375) | 25,525) | 24,918) | 26,173) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 669,836) | 669,230) | 669,671) | 675,668) | 662,043) | 646,183) | 645,607) | 644,275) | 599,523) | 570,332) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term operating lease liabilities | 46,256) | 46,398) | 42,849) | 48,480) | 38,912) | 31,509) | 31,153) | 32,667) | 35,194) | 29,442) | 29,991) | 30,336) | 30,213) | 29,117) | 30,009) | 24,790) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 716,092) | 715,628) | 712,520) | 724,148) | 700,955) | 677,692) | 676,760) | 676,942) | 634,717) | 599,774) | 29,991) | 30,336) | 30,213) | 29,117) | 30,009) | 24,790) | —) | —) | —) | —) | ||||||
| Total assets | 4,265,949) | 3,903,546) | 3,772,778) | 3,682,915) | 2,892,060) | 2,656,833) | 2,564,325) | 2,464,595) | 2,437,109) | 2,278,296) | 1,605,826) | 1,513,840) | 1,494,624) | 1,337,592) | 1,221,694) | 1,176,923) | 964,472) | 852,178) | 783,230) | 731,561) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.17 | 0.18 | 0.19 | 0.20 | 0.24 | 0.26 | 0.26 | 0.27 | 0.26 | 0.26 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.05 | 0.03 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.08 | 0.14 | 0.12 | — | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.12 | 0.12 | 0.12 | 0.11 | 0.13 | 0.09 | — | — | — | — | ||||||
| NVIDIA Corp. | 0.26 | 0.29 | 0.33 | 0.25 | 0.26 | 0.28 | 0.30 | 0.32 | 0.15 | 0.16 | 0.17 | 0.18 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 716,092 ÷ 4,265,949 = 0.17
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt remained unreported until March 31, 2019, after which it showed a relatively stable range between approximately 24,790 and 30,000 thousand US dollars through mid-2020. A sharp and significant increase occurred in September 2020, with total debt rising drastically to around 599,774 thousand US dollars and continuing to increase steadily thereafter, reaching approximately 716,092 thousand US dollars by the end of 2022. This significant rise suggests a major change in financing or capital structure starting in late 2020.
- Total assets
- Total assets exhibited a consistent upward trend throughout the entire period. Starting at approximately 731,561 thousand US dollars at the end of March 2018, assets increased steadily each quarter, reaching over 1.5 million thousand US dollars by early 2020. A marked acceleration is observable from September 2020 onward, with assets rising sharply to approximately 2.3 million thousand US dollars, and continuing to grow to over 4.2 million thousand US dollars by the end of 2022. This trend reflects significant asset accumulation, possibly due to expansion, acquisitions, or capital investments.
- Debt to assets ratio (including operating lease liability)
- The debt to assets ratio remained consistently low and stable at around 0.02 until mid-2020, indicating minimal leverage relative to assets. In September 2020, this ratio increased dramatically to approximately 0.26, staying close to that level through to 2021. Subsequently, the ratio started a gradual declining trend, reducing to around 0.17 by the end of 2022. This pattern implies an initial sharp increase in leverage followed by deleveraging or asset growth outpacing debt increment.
- Summary
- The data presents a strong growth trajectory for total assets over the analyzed periods, particularly accelerating from the latter half of 2020. A concomitant sharp rise in total debt occurred at the same time, leading to a higher debt to assets ratio. Following this increase, the company appears to have initiated a phase of stabilization or deleveraging, as indicated by the gradual decline in the debt to asset ratio towards the end of 2022, despite continued asset growth. This suggests strategic financial decisions balancing expansion with risk management in recent quarters.
Financial Leverage
SolarEdge Technologies Inc., financial leverage calculation (quarterly data)
| 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 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Total assets | 4,265,949) | 3,903,546) | 3,772,778) | 3,682,915) | 2,892,060) | 2,656,833) | 2,564,325) | 2,464,595) | 2,437,109) | 2,278,296) | 1,605,826) | 1,513,840) | 1,494,624) | 1,337,592) | 1,221,694) | 1,176,923) | 964,472) | 852,178) | 783,230) | 731,561) | ||||||
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 2,052,127) | 2,027,532) | 2,010,525) | 1,310,039) | 1,242,083) | 1,177,793) | 1,099,924) | 1,085,757) | 1,032,037) | 924,801) | 866,418) | 811,670) | 732,012) | 674,071) | 626,319) | 562,408) | 538,963) | 484,891) | 440,211) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Financial leverage1 | 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 | 1.81 | 1.88 | 1.71 | 1.58 | 1.62 | 1.66 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 1.23 | 1.24 | 1.22 | 1.21 | 1.66 | 1.56 | 1.51 | 1.55 | 1.54 | 1.82 | 1.99 | 1.93 | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 1.38 | 1.37 | 1.37 | 1.37 | 1.38 | 1.76 | 1.77 | 1.77 | 1.79 | 1.83 | 1.84 | 1.83 | 1.83 | 1.83 | 1.85 | 1.88 | — | — | — | — | ||||||
| Applied Materials Inc. | 2.19 | 2.17 | 2.20 | 2.14 | 2.11 | 2.03 | 2.01 | 2.03 | 2.11 | 2.21 | 2.42 | 2.28 | 2.32 | 2.32 | 2.29 | 2.31 | — | — | — | — | ||||||
| Broadcom Inc. | 3.23 | 3.42 | 3.42 | 3.19 | 3.03 | 3.12 | 3.15 | 3.21 | 3.18 | 3.37 | 3.41 | 3.32 | 2.71 | 3.24 | 3.20 | 3.10 | — | — | — | — | ||||||
| Intel Corp. | 1.80 | 1.75 | 1.68 | 1.71 | 1.77 | 1.86 | 1.81 | 1.89 | 1.89 | 1.95 | 1.86 | 1.93 | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 8.99 | 2.95 | 2.89 | 2.89 | 3.04 | 3.19 | 3.34 | 3.39 | 3.48 | 3.83 | 3.46 | 3.47 | 3.39 | 3.22 | 3.51 | 3.60 | — | — | — | — | ||||||
| Lam Research Corp. | 2.74 | 2.75 | 2.58 | 2.67 | 2.64 | 2.85 | 2.79 | 2.78 | 2.81 | 2.85 | 2.72 | 2.50 | 2.57 | 2.44 | 1.86 | 2.06 | — | — | — | — | ||||||
| Micron Technology Inc. | 1.33 | 1.32 | 1.33 | 1.33 | 1.34 | 1.32 | 1.33 | 1.35 | 1.38 | 1.38 | 1.34 | 1.36 | 1.36 | 1.31 | 1.37 | 1.32 | — | — | — | — | ||||||
| NVIDIA Corp. | 1.66 | 1.71 | 1.83 | 1.64 | 1.70 | 1.75 | 1.81 | 1.78 | 1.42 | 1.41 | 1.43 | 1.44 | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 2.72 | 2.93 | 3.32 | 3.78 | 4.14 | 4.74 | 5.01 | 5.08 | 5.86 | 9.78 | 10.49 | 7.34 | 6.71 | 6.25 | 8.80 | 9.47 | — | — | — | — | ||||||
| Texas Instruments Inc. | 1.87 | 1.80 | 1.75 | 1.80 | 1.85 | 1.92 | 1.85 | 1.93 | 2.11 | 2.19 | 2.28 | 2.23 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Financial leverage = Total assets ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 4,265,949 ÷ 2,176,366 = 1.96
2 Click competitor name to see calculations.
The financial data over the analyzed quarters show a consistent upward trend in both total assets and total stockholders’ equity, reflecting ongoing growth and capital accumulation within the company.
- Total Assets
-
Total assets have increased steadily from approximately 731.6 million USD at the end of Q1 2018 to over 4.26 billion USD by the end of Q4 2022. This upward momentum exhibits accelerated growth particularly from mid-2020 onward, with a notable jump between Q2 2020 and Q4 2020, suggesting significant asset acquisitions or investments during this period.
- Total Stockholders’ Equity
-
Stockholders’ equity similarly reflects a strong growth trajectory, starting at roughly 440.2 million USD in Q1 2018 and rising to approximately 2.18 billion USD by Q4 2022. Equity growth closely parallels asset growth, maintaining a healthy level of capitalization, although the rate of increase spikes notably from Q1 2022 onwards, indicating possibly new equity issuance or retained earnings buildup contributing to stronger capital base.
- Financial Leverage Ratio
-
The financial leverage ratio, which indicates the proportion of total assets financed by equity, exhibits some fluctuation across the quarters. Starting at 1.66 in Q1 2018, the ratio gently declined to a low of around 1.58 in Q3 2018 before rising again, peaking at approximately 2.24 in Q4 2020 and Q1 2021. After this peak, the leverage ratio declines gradually but remains above 1.8, ending at 1.96 in Q4 2022.
This pattern suggests that the company maintained a moderate level of financial leverage throughout the period, with increased borrowing or liabilities relative to equity noticeable during the 2020 timeframe. However, the slight decrease in leverage after early 2021 could point to efforts to reduce debt levels or enhance equity financing, contributing to improved financial stability.
Overall, the data indicates sustained growth with prudent capital structure management, where the increase in total assets is supported by growing equity and controlled leverage. The acceleration in asset and equity growth post-2020 aligns with potential strategic expansions or favorable market conditions, while the leverage ratio suggests balanced risk management in financing methods.