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).
- Short-term finance lease liabilities
- These liabilities were absent or not reported in 2018, then showed a minor presence in 2019 with a value of 231 thousand US dollars. They exhibited significant growth each subsequent year, increasing to 1,686 thousand in 2020, 1,875 thousand in 2021, and reaching 3,263 thousand by the end of 2022. This pattern indicates an increasing reliance on short-term leasing arrangements over the period analyzed.
- Convertible senior notes, net
- No data was reported for this category prior to 2020. In 2020, the company reported convertible senior notes valued at 573,350 thousand US dollars. This amount increased to 621,535 thousand in 2021 and slightly grew to 624,451 thousand in 2022. The issuance and subsequent growth in this category suggest a strategy involving the utilization of convertible debt as a financing mechanism, with stabilization observed towards the later period.
- Long-term finance lease liabilities
- No figures were recorded for 2018, but a starting point of 2,399 thousand US dollars was noted in 2019. A substantial increase was observed in 2020, rising to 26,173 thousand US dollars. This upward trend continued with 40,508 thousand in 2021 and 45,385 thousand in 2022. The escalation reflects a growing commitment to long-term lease obligations, indicating expansion or increased capital utilization through finance leases.
- Total convertible senior notes and finance lease liabilities (carrying amount)
- The total carrying amount began at 2,630 thousand US dollars in 2019. It then surged to 601,209 thousand in 2020, further increased to 663,918 thousand in 2021, and slightly ascended again to 673,099 thousand in 2022. This aggregate trend mirrors the individual components, highlighting a significant overall increase in financed liabilities, primarily driven by the large increase in convertible senior notes and long-term finance lease liabilities over the timeframe.
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%