Balance Sheet: Liabilities and Stockholders’ Equity
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.
Paying user area
Try for free
SolarEdge Technologies Inc. pages available for free this week:
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2015
- Return on Assets (ROA) since 2015
- Price to Earnings (P/E) since 2015
- Price to Operating Profit (P/OP) since 2015
- Price to Sales (P/S) since 2015
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to SolarEdge Technologies Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
SolarEdge Technologies Inc., consolidated balance sheet: liabilities and stockholders’ equity
US$ 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).
The analysis of the financial data for the periods ending December 31, 2018, through 2022 reveals several notable trends in liabilities, equity, and related financial components.
- Current Liabilities
- Current liabilities increased substantially over the analyzed period, rising from approximately $226 million in 2018 to nearly $890 million in 2022. Key contributors to this increase included trade payables, which more than quadrupled from $107 million to $460 million, and accrued expenses and other current liabilities, which more than quadrupled from around $46 million to $214 million. Employees and payroll accruals also showed consistent growth, reaching $85 million in 2022 from $29 million in 2018. Warranty obligations at the current level similarly increased, reflecting heightened warranty-related liabilities.
- Long-Term Liabilities
- Long-term liabilities surged from about $168 million in 2018 to nearly $1.2 billion in 2022. Convertible senior notes, which were absent in 2018 and 2019, became a significant component starting in 2020, amounting to over $624 million by 2022. Warranty obligations exhibited steady growth, increasing from around $93 million to $281 million. Deferred revenues expanded by more than three-fold, reaching $187 million in 2022. Finance and operating lease liabilities also experienced increases, although at a more moderate rate. Tax liabilities decreased slightly over the period, and accrued severance pay rose notably in 2022.
- Total Liabilities
- Total liabilities grew markedly from approximately $394 million in 2018 to over $2.09 billion in 2022, reflecting both growing operational scale and increased financial obligations. This upward trend is consistent with growth in both current and long-term obligations, with significant expansion in convertible debt and trade-related payables.
- Stockholders’ Equity
- Stockholders’ equity expanded significantly, more than tripling from $571 million in 2018 to about $2.18 billion in 2022. This growth was largely driven by increases in additional paid-in capital, which more than quadrupled, and retained earnings, which approximately quadrupled as well. Conversely, accumulated other comprehensive income presented a negative trend, moving from a small loss in 2018 to a larger negative balance exceeding $73 million in 2022, indicating unfavorable movements in certain comprehensive income components during the period.
- Total Liabilities and Equity
- The combined total of liabilities and stockholders’ equity experienced a substantial increase from just under $965 million in 2018 to over $4.26 billion in 2022, reflecting significant overall growth in the company's financial scale and capital structure.
- Other Observations
- Some line items, such as accrual for sales incentives and provision for legal claims, appeared sporadically in more recent years, with the provision for legal claims decreasing sharply in 2022. The "Other" categories within both current and long-term liabilities showed varied movements, indicating some fluctuations in less-defined obligation categories. Short-term and long-term finance and operating lease liabilities, while starting from low or zero bases, increased steadily, reflecting possibly increased leasing activities or adoption of related accounting standards.
In summary, the overall financial liability structure has expanded significantly in both short-term and long-term categories, with strong growth in trade payables, convertible debt, and deferred revenues. Equity financing and retained earnings have also grown robustly, indicating both investor support and retained profitability. The increasing negative balance in accumulated other comprehensive income warrants attention as it may affect comprehensive earnings volatility. The sizeable growth in total liabilities and equity signals substantial business growth, capital investment, and potentially increased financial leverage over the analyzed timeframe.