Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
SolarEdge Technologies Inc., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 3.26 | 3.26 | 3.94 | 2.14 | 3.00 | |
| Quick ratio | 2.17 | 2.20 | 2.73 | 1.41 | 2.14 | |
| Cash ratio | 1.15 | 1.33 | 2.23 | 0.72 | 1.37 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | SolarEdge Technologies Inc. current ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | SolarEdge Technologies Inc. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | SolarEdge Technologies Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Current Ratio
SolarEdge Technologies Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 2,899,658) | 1,711,291) | 1,719,341) | 932,763) | 678,113) | |
| Current liabilities | 889,717) | 525,181) | 436,099) | 436,714) | 225,718) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 3.26 | 3.26 | 3.94 | 2.14 | 3.00 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 2.36 | 2.02 | 2.54 | 1.95 | — | |
| Analog Devices Inc. | 2.02 | 1.94 | 1.84 | 1.32 | 1.50 | |
| Applied Materials Inc. | 2.16 | 2.54 | 3.00 | 2.30 | 2.64 | |
| Broadcom Inc. | 2.62 | 2.64 | 1.87 | 1.44 | 3.90 | |
| Intel Corp. | 1.57 | 2.10 | 1.91 | 1.40 | — | |
| KLA Corp. | 2.50 | 2.71 | 2.78 | 2.44 | 3.73 | |
| Lam Research Corp. | 2.69 | 3.30 | 3.43 | 3.61 | 2.90 | |
| Micron Technology Inc. | 2.89 | 3.10 | 2.71 | 2.58 | 2.79 | |
| NVIDIA Corp. | 6.65 | 4.09 | 7.67 | 7.94 | — | |
| ON Semiconductor Corp. | 2.78 | 2.45 | 1.90 | 1.66 | — | |
| Qualcomm Inc. | 1.75 | 1.68 | 2.14 | 1.88 | 1.55 | |
| Texas Instruments Inc. | 4.70 | 5.33 | 4.28 | 4.13 | — | |
| Current Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 2.35 | 2.47 | 2.45 | 2.03 | — | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.44 | 1.64 | 1.85 | 1.77 | — | |
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 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,899,658 ÷ 889,717 = 3.26
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | SolarEdge Technologies Inc. current ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Quick Ratio
SolarEdge Technologies Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 783,112) | 530,089) | 827,146) | 223,901) | 191,633) | |
| Marketable securities | 241,117) | 167,728) | 143,687) | 91,845) | 118,680) | |
| Trade receivables, net of allowances | 905,146) | 456,339) | 218,706) | 298,383) | 173,579) | |
| Total quick assets | 1,929,375) | 1,154,156) | 1,189,539) | 614,129) | 483,892) | |
| Current liabilities | 889,717) | 525,181) | 436,099) | 436,714) | 225,718) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 2.17 | 2.20 | 2.73 | 1.41 | 2.14 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 1.57 | 1.49 | 1.81 | 1.43 | — | |
| Analog Devices Inc. | 1.34 | 1.24 | 1.31 | 0.85 | 1.04 | |
| Applied Materials Inc. | 1.17 | 1.64 | 1.95 | 1.38 | 1.62 | |
| Broadcom Inc. | 2.18 | 2.27 | 1.56 | 1.21 | 3.26 | |
| Intel Corp. | 1.01 | 1.38 | 1.24 | 0.93 | — | |
| KLA Corp. | 1.57 | 1.81 | 1.82 | 1.54 | 2.90 | |
| Lam Research Corp. | 1.75 | 2.48 | 2.78 | 2.90 | 2.26 | |
| Micron Technology Inc. | 1.92 | 2.17 | 1.82 | 1.74 | 2.13 | |
| NVIDIA Corp. | 5.96 | 3.56 | 7.04 | 6.66 | — | |
| ON Semiconductor Corp. | 1.82 | 1.40 | 1.05 | 0.88 | — | |
| Qualcomm Inc. | 1.01 | 1.34 | 1.75 | 1.65 | 1.33 | |
| Texas Instruments Inc. | 3.67 | 4.45 | 3.34 | 3.04 | — | |
| Quick Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.63 | 1.80 | 1.79 | 1.48 | — | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.15 | 1.38 | 1.60 | 1.55 | — | |
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 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,929,375 ÷ 889,717 = 2.17
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | SolarEdge Technologies Inc. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Cash Ratio
SolarEdge Technologies Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 783,112) | 530,089) | 827,146) | 223,901) | 191,633) | |
| Marketable securities | 241,117) | 167,728) | 143,687) | 91,845) | 118,680) | |
| Total cash assets | 1,024,229) | 697,817) | 970,833) | 315,746) | 310,313) | |
| Current liabilities | 889,717) | 525,181) | 436,099) | 436,714) | 225,718) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.15 | 1.33 | 2.23 | 0.72 | 1.37 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.92 | 0.85 | 0.95 | 0.64 | — | |
| Analog Devices Inc. | 0.60 | 0.71 | 0.77 | 0.43 | 0.58 | |
| Applied Materials Inc. | 0.35 | 0.86 | 1.29 | 0.81 | 0.99 | |
| Broadcom Inc. | 1.76 | 1.94 | 1.20 | 0.73 | 1.84 | |
| Intel Corp. | 0.88 | 1.03 | 0.97 | 0.59 | — | |
| KLA Corp. | 0.94 | 1.19 | 1.17 | 0.98 | 2.36 | |
| Lam Research Corp. | 0.80 | 1.62 | 2.12 | 2.29 | 1.57 | |
| Micron Technology Inc. | 1.24 | 1.34 | 1.23 | 1.24 | 1.18 | |
| NVIDIA Corp. | 4.89 | 2.95 | 6.11 | 5.58 | — | |
| ON Semiconductor Corp. | 1.42 | 0.88 | 0.65 | 0.49 | — | |
| Qualcomm Inc. | 0.54 | 1.04 | 1.29 | 1.37 | 1.08 | |
| Texas Instruments Inc. | 3.04 | 3.79 | 2.75 | 2.54 | — | |
| Cash Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.16 | 1.31 | 1.33 | 1.04 | — | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.72 | 0.96 | 1.19 | 1.11 | — | |
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 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,024,229 ÷ 889,717 = 1.15
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | SolarEdge Technologies Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |