Analysis of Debt
Total Debt (Carrying Amount)
SolarEdge Technologies Inc., balance sheet: debt
US$ in thousands
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).
A significant expansion in the total carrying amount of debt occurred between 2019 and 2022, marking a transition from minimal obligations to a substantial debt profile. Total convertible senior notes and finance lease liabilities rose from US$ 2.63 million in 2019 to US$ 673.10 million by the end of 2022.
- Convertible Senior Notes
- This instrument serves as the primary driver of the increase in total debt. No balance was recorded for these notes in 2019, but a substantial obligation of US$ 573.35 million appeared in 2020. This balance grew steadily over the following two years, reaching US$ 624.45 million by December 31, 2022.
- Finance Lease Liabilities
- Lease obligations experienced consistent growth in both short-term and long-term categories. Short-term finance lease liabilities increased from US$ 231 thousand in 2019 to US$ 3.26 million in 2022. Long-term finance lease liabilities saw a more pronounced escalation, rising from US$ 2.40 million in 2019 to US$ 45.39 million in 2022.
- Aggregate Debt Trajectory
- The most aggressive increase in leverage occurred between 2019 and 2020, during which total liabilities surged from US$ 2.63 million to US$ 601.21 million. Following this initial spike, the growth rate decelerated, with a 10.4% increase in 2021 and a marginal 1.3% increase in 2022.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Convertible senior notes | 831,000) |
| Finance lease liabilities | 48,648) |
| Total convertible senior notes and finance lease liabilities (fair value) | 879,648) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.31 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 0.60%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 0.47% | 624,451) | 2,935) | |
| 2.30% | 48,648) | 1,119) | |
| Total | 673,099) | 4,054) | |
| 0.60% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 4,054 ÷ 673,099 = 0.60%