SolarEdge Technologies Inc. (NASDAQ:SEDG)

The annual financial data reveals a consistent upward trend in both current assets and adjusted current assets over the five-year period analyzed. The values demonstrate substantial growth from 2018 through 2022, indicating an expanding asset base within the current asset category.

Current Assets

There is a clear increase in current assets, rising from approximately 678 million US dollars in 2018 to nearly 2.9 billion US dollars by the end of 2022. The most significant jump appears between 2019 and 2020, with the value nearly doubling, and continued growth is observed through 2021 and 2022, although at a somewhat moderated rate compared to the previous jump.

Adjusted Current Assets

This metric follows a pattern almost identical to that of current assets, starting at roughly 678.5 million US dollars in 2018 and increasing steadily to about 2.9 billion US dollars in 2022. The slight difference between adjusted and standard current assets is minimal and remains consistent each year, indicating minimal adjustments and a likely alignment between reported and adjusted asset values.

Overall, the data suggests a strong improvement in liquidity or short-term asset holdings, which could reflect enhanced operational scale, increased working capital, or strategic accumulation of assets to support business activities. The consistent growth trajectory infers positive management of asset growth and potential for operational expansion.

The analysis of the annual financial data reveals a consistent upward trend in the total assets of the company over the five-year period from 2018 to 2022.

Total Assets

The total assets have shown significant growth year over year. In 2018, the total assets were valued at approximately $964 million. This figure increased substantially to around $1.5 billion in 2019 and continued the strong growth trajectory to nearly $2.4 billion in 2020. The upward trend persisted, with total assets reaching approximately $2.9 billion in 2021 and further increasing to about $4.3 billion by the end of 2022. This consistent increase indicates robust asset accumulation, reflecting expansion or investment activities by the company.

Adjusted Total Assets

The adjusted total assets closely mirror the trend observed in total assets, with only minor deviations. Starting at roughly $970 million in 2018, adjusted total assets decreased slightly to approximately $1.48 billion in 2019, maintaining a growth pattern similar to the total assets. In 2020, this value rose to about $2.43 billion, followed by an increase to nearly $2.87 billion in 2021. By 2022, adjusted total assets reached roughly $4.2 billion. The small variance between total assets and adjusted total assets suggests adjustments are consistently minor relative to the total asset base.

Overall, the trends in total and adjusted total assets demonstrate strong and steady growth, indicating an expanding asset base and potentially favorable operational developments during the period analyzed.

Current Liabilities

The current liabilities exhibit a consistent upward trend over the five-year period analyzed. Beginning at approximately $225.7 million at the end of 2018, there was a pronounced increase to about $436.7 million by the close of 2019. Following this, the current liabilities remained relatively stable in 2020 with a slight decrease to around $436.1 million. In 2021, the figure rose again to approximately $525.2 million and experienced a significant surge in 2022, reaching roughly $889.7 million. This trend indicates increasing short-term financial obligations or accrued expenses, suggesting potential growth in operational scale, increased borrowing, or other liabilities rising in the short term.

Adjusted Current Liabilities

The adjusted current liabilities also show a rising pattern similar to the unadjusted current liabilities, though the values are consistently lower, reflecting adjustments likely made for non-operational or non-recurring items. Starting from about $182.5 million in 2018, the amount increased markedly to approximately $300.8 million in 2019. The upward trend continued steadily with $348.8 million in 2020 and $435.9 million in 2021. The most notable change occurred from 2021 to 2022 when adjusted current liabilities climbed sharply to approximately $759.1 million. This consistent increase underscores a sustained escalation in underlying current obligations after adjustments, reaffirming the growth in short-term liabilities with consideration of specified exclusions or normalizations.

General Insights

Both current liabilities metrics reflect substantial growth, especially notable from 2021 to 2022, suggesting increased reliance on short-term financial commitments. The relatively close alignment of adjusted liabilities with unadjusted ones over the years may indicate that the adjustments have a consistent proportional impact rather than fluctuating significantly. The escalation could be associated with expansion activities, higher costs, or changes in working capital management. Continued monitoring of these liabilities is important to assess liquidity risk and ensure adequate current asset coverage.

Total Liabilities

The total liabilities show a consistent upward trend over the five-year period. Starting from approximately 394 million US dollars at the end of 2018, they increased substantially to about 683 million in 2019. This growth accelerated significantly in 2020, more than doubling to over 1.35 billion. The upward trajectory continued but at a slower pace, reaching approximately 1.58 billion in 2021 and further rising to nearly 2.09 billion by the end of 2022. This pattern indicates increasing financial obligations or borrowings over time.

Adjusted Total Liabilities

Adjusted total liabilities also exhibit a marked increase from 2018 through 2022. The value starts at roughly 215 million US dollars in 2018 and rises to about 345 million in 2019, reflecting a significant increase. In 2020, there is a sharp surge to nearly 998 million, highlighting a substantial adjustment or reclassification in liabilities. The growth continues to 1.15 billion in 2021 and reaches approximately 1.49 billion in 2022. The pattern is consistent with the total liabilities trend, though the adjusted figures are consistently lower, suggesting the exclusion or adjustment of certain liability components over the years.

Overall Insights

The increasing trend in both total and adjusted liabilities suggests expanding financial commitments, possibly due to growth financing, acquisition-related liabilities, or operational scaling. The accelerated increase between 2019 and 2020 indicates a significant event or strategic decision impacting the company's liabilities. The persistent rise through 2022 underscores a continued reliance on external funds or obligations. The difference between total and adjusted liabilities implies ongoing adjustments to reported liabilities, which may reflect changes in accounting policies or refinements for a clearer financial picture.

The analysis of the financial data reveals a consistent and notable upward trend in the equity measures of the company over the five-year period evaluated.

Total stockholders’ equity

This metric shows a steady increase year over year. Starting at 562,408 thousand US dollars in 2018, it rises to 811,670 in 2019, then to 1,085,757 in 2020, 1,310,039 in 2021, and reaches 2,176,366 in 2022. This progression indicates a strong growth in the overall net assets attributable to shareholders, suggesting increased retained earnings, capital contributions, or both. The equity more than tripled over the five years.

Adjusted total stockholders’ equity

The adjusted measure, presumably accounting for additional factors such as market adjustments or intangible asset revaluations, also shows a robust increase from 754,800 thousand US dollars in 2018 to 2,734,049 thousand in 2022. This consistent increase aligns with the trend in the total stockholders’ equity, but the adjusted figures are higher at each point, indicating that the adjustments added significant value or coverage beyond the reported equity. The adjusted equity also more than tripled during the period.

Overall, the data suggest a positive financial trajectory with substantial growth in shareholder value over the selected timeframe. The rising trends in both reported and adjusted equity imply strengthening of the company’s financial foundation and potential for enhanced investor confidence. There are no indications of decline or fluctuation disrupting this pattern.

Over the five-year period from 2018 to 2022, there are notable upward trends across various financial metrics indicating significant growth and expansion activities.

Total Reported Debt

This metric showed a substantial increase starting from 2019. In 2018, no data was reported. Debt rose from US$2.63 million in 2019 to US$673.10 million in 2022, marking a considerable escalation particularly between 2019 and 2020, where it jumped by over 228 times. The growth in debt suggests increased leveraging or financing activities over these years.

Total Stockholders' Equity

The stockholders’ equity demonstrated a consistent upward trajectory throughout the period. Starting at US$562.41 million in 2018, it nearly quadrupled to US$2.18 billion by the end of 2022. This strong growth indicates robust retained earnings, increased capital injections, or both, enhancing the company’s net worth.

Total Reported Capital

Total reported capital, defined as the sum of debt and equity, grew markedly year over year. It escalated from US$562.41 million in 2018 to US$2.85 billion in 2022. The rise reflects both the increased debt and equity positions, signifying overall capital structure expansion.

Adjusted Total Debt

The adjusted total debt figures, which may account for off-balance sheet items or other financial adjustments, present a similar growth pattern as reported debt but start from a non-zero base in 2018 of US$19.81 million. By 2022, this figure reached US$735.54 million, showing a steady increase year on year with a marked surge between 2019 and 2020.

Adjusted Total Stockholders’ Equity

Analogous to the reported equity, the adjusted equity increased consistently from US$754.80 million in 2018 to US$2.73 billion in 2022. This steady growth suggests improvements in net asset value after adjustments, underlining financial strength and resilience.

Adjusted Total Capital

Adjusted total capital increased significantly from US$774.61 million in 2018 to US$3.47 billion in 2022. The rise underscores an expanding financial base, driven by increases in both adjusted debt and equity. This growth trend points to aggressive capital investment and possible strategic expansion initiatives.

In summary, the data indicates aggressive growth reflected in expanded debt levels and substantial increases in equity and overall capital. The increased leverage, alongside rising equity, suggests active capital management and expansion efforts. The consistency between reported and adjusted figures reinforces the reliability of these trends.

Revenue Growth

The company's revenues increased consistently over the five-year period. Starting from approximately $937 million in 2018, revenues rose to about $1.43 billion in 2020 and further accelerated to approximately $3.11 billion by the end of 2022. This represents a strong upward trend with notable revenue growth especially between 2021 and 2022.

Adjusted Revenues

Adjusted revenues followed a similar trajectory to reported revenues. They grew from roughly $978 million in 2018 to over $3.15 billion at the end of 2022, showing an overall increase consistent with the pattern observed in reported revenues. The adjusted figures are consistently slightly higher than reported revenues, indicating possible adjustments that increase the revenue base recognized in the financial statements.

Comparative Annual Changes

The largest relative increase in both revenues and adjusted revenues occurred between 2021 and 2022. This suggests a significant acceleration in business performance or market expansion during this period. The revenue resulted in more than a 58% increase from 2021 to 2022, a substantial jump compared to prior years.

Business Implications

The data indicates robust growth in top-line performance, reflecting either increased sales volume, price increases, expansion into new markets, or a combination thereof. The consistency between revenue and adjusted revenue trends also suggests stability in financial reporting and underlying operating activities.

Net Income Attributable to SolarEdge Technologies, Inc.

The net income showed an overall increasing trend from 2018 to 2021, rising from 128,833 thousand US dollars in 2018 to a peak of 169,170 thousand US dollars in 2021. However, in 2022, there was a significant decline to 93,779 thousand US dollars, marking a sharp decrease compared to the prior year.

Adjusted Net Income

Adjusted net income displayed a more volatile pattern. It increased substantially from 206,300 thousand US dollars in 2018 to 276,805 thousand US dollars in 2019, followed by a noticeable drop to 154,621 thousand US dollars in 2020. The amount rebounded to 215,587 thousand US dollars in 2021 and then experienced a slight decline to 201,640 thousand US dollars in 2022.

Overall Analysis

While the net income attributable to the company reflects a general upward trend until 2021 and a steep decline thereafter, the adjusted net income shows more fluctuation with no consistent directional movement. The divergence between the net income and adjusted net income in recent years suggests possible one-time or non-recurring items affecting the reported earnings. The decline in net income in 2022 contrasts with the relatively stable adjusted net income, indicating that underlying operational profitability may have remained healthier than the net income figures alone suggest.