Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
SolarEdge Technologies Inc., solvency ratios
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).
- Debt Ratios Trends
- The debt to equity ratio, starting from zero in 2019, increased substantially to 0.55 in 2020, followed by a slight decrease to 0.51 in 2021 and a more pronounced decline to 0.31 in 2022. When incorporating operating lease liabilities, the debt to equity ratio shows a similar pattern but at slightly higher values, peaking at 0.60 in 2020 and decreasing to 0.34 by 2022.
- The debt to capital ratio rises sharply from zero in 2019 to 0.36 in 2020, marginally declining thereafter to 0.24 in 2022. Including operating lease liabilities, this ratio follows a comparable trajectory, slightly higher overall, with a peak of 0.37 in 2020 and a reduction to 0.25 in 2022.
- Debt to assets ratio begins at zero in 2019, increases to 0.25 in 2020, and gradually decreases to 0.16 in 2022. The inclusion of operating lease liabilities leads to a marginally higher ratio, peaking at 0.27 in 2020 and declining to 0.17 in 2022.
- Financial Leverage
- Financial leverage steadily increased from 1.71 in 2018 to reach a peak of 2.24 in 2020. Thereafter, it mildly decreased to 2.21 in 2021 and further to 1.96 in 2022, indicating a trend of increasing reliance on liabilities followed by a moderate reduction.
- Interest and Fixed Charge Coverage
- Interest coverage experienced a pronounced decline from a high of 43.7 in 2018 to 31.66 in 2019, then to 17.17 in 2020. It slightly recovered to 18.55 in 2021 but decreased again to 16.35 in 2022, demonstrating a marked reduction in the company's ability to cover interest expenses over the observed period.
- Fixed charge coverage mirrored this downward trend, falling from 15.52 in 2018 to 12.53 in 2019 and then more steeply to 8.16 in 2020. It remained relatively stable in 2021 at 8.33 before decreasing to 7.46 in 2022, indicating diminishing capacity to meet fixed financial obligations.
Debt Ratios
Coverage Ratios
Debt to Equity
SolarEdge Technologies Inc., debt to equity 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) | ||||||
| Short-term finance lease liabilities | 3,263) | 1,875) | 1,686) | 231) | —) | |
| Convertible senior notes, net | 624,451) | 621,535) | 573,350) | —) | —) | |
| Long-term finance lease liabilities | 45,385) | 40,508) | 26,173) | 2,399) | —) | |
| Total debt | 673,099) | 663,918) | 601,209) | 2,630) | —) | |
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 1,310,039) | 1,085,757) | 811,670) | 562,408) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.31 | 0.51 | 0.55 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.05 | 0.04 | 0.06 | — | — | |
| Analog Devices Inc. | 0.18 | 0.18 | 0.43 | 0.47 | — | |
| Applied Materials Inc. | 0.45 | 0.45 | 0.52 | 0.65 | — | |
| Broadcom Inc. | 1.74 | 1.59 | 1.72 | 1.32 | — | |
| Intel Corp. | 0.41 | 0.40 | 0.45 | — | — | |
| KLA Corp. | 4.75 | 1.02 | 1.30 | 1.29 | — | |
| Lam Research Corp. | 0.80 | 0.83 | 1.12 | 0.96 | — | |
| Micron Technology Inc. | 0.14 | 0.15 | 0.17 | 0.16 | — | |
| NVIDIA Corp. | 0.41 | 0.41 | 0.16 | — | — | |
| Qualcomm Inc. | 0.86 | 1.58 | 2.59 | 3.25 | — | |
| Texas Instruments Inc. | 0.60 | 0.58 | 0.74 | — | — | |
| Debt to Equity, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.43 | 0.50 | 0.62 | — | — | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.71 | 0.83 | 0.97 | — | — | |
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
Debt to equity = Total debt ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 673,099 ÷ 2,176,366 = 0.31
2 Click competitor name to see calculations.
- Total debt
- The total debt increased significantly from 2,630 thousand US dollars in 2019 to 601,209 thousand US dollars in 2020. This upward trend continued through 2021 and 2022, with total debt reaching 663,918 thousand and 673,099 thousand US dollars respectively. The data indicates a substantial rise in debt levels between 2019 and 2020, followed by a more moderate increase in the subsequent years.
- Total stockholders’ equity
- The stockholders’ equity showed consistent growth across all periods presented. Starting from 562,408 thousand US dollars in 2018, equity increased steadily year-over-year, with notable increments leading to 811,670 thousand in 2019, 1,085,757 thousand in 2020, 1,310,039 thousand in 2021, and reaching 2,176,366 thousand US dollars in 2022. This reflects strong capitalization and asset growth.
- Debt to equity ratio
- The debt to equity ratio began at 0 in 2019, reflecting negligible debt relative to equity. In 2020, the ratio increased to 0.55, indicating that debt was over half of the equity value. A slight improvement was seen in 2021 with a reduction to 0.51, and a more significant decrease occurred in 2022 with the ratio narrowing to 0.31. These changes suggest a trend towards a more conservative capital structure with less reliance on debt relative to equity over time.
Debt to Equity (including Operating Lease Liability)
SolarEdge Technologies Inc., debt to equity (including operating lease liability) 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) | ||||||
| Short-term finance lease liabilities | 3,263) | 1,875) | 1,686) | 231) | —) | |
| Convertible senior notes, net | 624,451) | 621,535) | 573,350) | —) | —) | |
| Long-term finance lease liabilities | 45,385) | 40,508) | 26,173) | 2,399) | —) | |
| Total debt | 673,099) | 663,918) | 601,209) | 2,630) | —) | |
| Short-term operating lease liabilities | 16,183) | 12,728) | 10,994) | 9,590) | —) | |
| Long-term operating lease liabilities | 46,256) | 38,912) | 35,194) | 30,213) | —) | |
| Total debt (including operating lease liability) | 735,538) | 715,558) | 647,397) | 42,433) | —) | |
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 1,310,039) | 1,085,757) | 811,670) | 562,408) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.34 | 0.55 | 0.60 | 0.05 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.05 | 0.10 | 0.10 | — | — | |
| Analog Devices Inc. | 0.19 | 0.19 | 0.46 | 0.47 | — | |
| Applied Materials Inc. | 0.48 | 0.47 | 0.54 | 0.65 | — | |
| Broadcom Inc. | 1.76 | 1.61 | 1.75 | 1.32 | — | |
| Intel Corp. | 0.42 | 0.40 | 0.46 | — | — | |
| KLA Corp. | 4.83 | 1.05 | 1.34 | 1.29 | — | |
| Lam Research Corp. | 0.83 | 0.86 | 1.16 | 0.96 | — | |
| Micron Technology Inc. | 0.15 | 0.17 | 0.19 | 0.16 | — | |
| NVIDIA Corp. | 0.44 | 0.46 | 0.22 | — | — | |
| Qualcomm Inc. | 0.90 | 1.64 | 2.67 | 3.25 | — | |
| Texas Instruments Inc. | 0.63 | 0.62 | 0.77 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.45 | 0.52 | 0.64 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.77 | 0.91 | 1.04 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 735,538 ÷ 2,176,366 = 0.34
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt exhibited a significant upward trend over the period analyzed. Starting from a negligible or zero level in 2018, the debt level increased sharply in 2019 to 42,433 thousand US dollars. This rise continued steeply into 2020, reaching 647,397 thousand US dollars. Although growth in debt slowed somewhat in 2021 to 715,558 thousand US dollars and again in 2022 to 735,538 thousand US dollars, the overall trajectory reflects a substantial increase in leverage over the five-year period.
- Total stockholders’ equity
- Stockholders' equity demonstrated consistent and robust growth throughout the years reviewed. Beginning at 562,408 thousand US dollars in 2018, equity increased significantly each year, reaching over 2,176,366 thousand US dollars by 2022. This steady increase suggests sustained profitability or capital infusion contributing to the strengthening of the company’s financial position.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio reveals an initially low leverage position in 2019 at 0.05. The ratio then rose sharply to 0.6 in 2020, indicating a substantial increase in debt relative to equity during this period. It slightly decreased to 0.55 in 2021 and further declined to 0.34 in 2022. This pattern indicates that while debt increased, the company’s equity growth outpaced debt accumulation in the latter years, resulting in a partial reduction of financial leverage after peaking in 2020.
Debt to Capital
SolarEdge Technologies Inc., debt to capital 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) | ||||||
| Short-term finance lease liabilities | 3,263) | 1,875) | 1,686) | 231) | —) | |
| Convertible senior notes, net | 624,451) | 621,535) | 573,350) | —) | —) | |
| Long-term finance lease liabilities | 45,385) | 40,508) | 26,173) | 2,399) | —) | |
| Total debt | 673,099) | 663,918) | 601,209) | 2,630) | —) | |
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 1,310,039) | 1,085,757) | 811,670) | 562,408) | |
| Total capital | 2,849,465) | 1,973,957) | 1,686,966) | 814,300) | 562,408) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.24 | 0.34 | 0.36 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.05 | — | — | |
| Analog Devices Inc. | 0.15 | 0.15 | 0.30 | 0.32 | — | |
| Applied Materials Inc. | 0.31 | 0.31 | 0.34 | 0.39 | — | |
| Broadcom Inc. | 0.64 | 0.61 | 0.63 | 0.57 | — | |
| Intel Corp. | 0.29 | 0.29 | 0.31 | — | — | |
| KLA Corp. | 0.83 | 0.50 | 0.57 | 0.56 | — | |
| Lam Research Corp. | 0.44 | 0.45 | 0.53 | 0.49 | — | |
| Micron Technology Inc. | 0.12 | 0.13 | 0.15 | 0.14 | — | |
| NVIDIA Corp. | 0.29 | 0.29 | 0.14 | — | — | |
| Qualcomm Inc. | 0.46 | 0.61 | 0.72 | 0.76 | — | |
| Texas Instruments Inc. | 0.37 | 0.37 | 0.43 | — | — | |
| Debt to Capital, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.30 | 0.33 | 0.38 | — | — | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.41 | 0.45 | 0.49 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 673,099 ÷ 2,849,465 = 0.24
2 Click competitor name to see calculations.
- Total Debt
- The total debt increased significantly over the analyzed period. There was no recorded debt at the end of 2018, but by the end of 2019, total debt rose modestly to approximately $2.63 million. A substantial jump occurred in 2020, with total debt rising to over $600 million. This upward trend continued slightly in the following years, peaking at around $673 million by the end of 2022. This pattern suggests increasing leverage and potential expansion requiring external financing.
- Total Capital
- Total capital demonstrated strong and consistent growth throughout the entire period. Starting from about $562 million at the end of 2018, total capital increased to over $814 million by the end of 2019. The growth accelerated substantially from 2020 onward, reaching nearly $1.7 billion in 2020 and continuing up to approximately $2.85 billion by the end of 2022. The significant increase in total capital indicates enhanced equity and debt funding, supporting the company's expanded asset base or operational scale.
- Debt to Capital Ratio
- The debt to capital ratio exhibited a notable pattern relative to the changes in debt and capital. There was no ratio recorded for 2018, presumably due to zero debt. In 2019, the ratio was zero, indicating extremely low or no debt relative to capital. In 2020, the ratio rose sharply to 0.36, reflecting the considerable increase in debt. Subsequently, the ratio showed a gradual declining trend, falling to 0.34 in 2021 and further down to 0.24 in 2022. This decline suggests that although debt increased, total capital grew at a faster pace, leading to a relatively lower proportion of debt financing over time.
Debt to Capital (including Operating Lease Liability)
SolarEdge Technologies Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term finance lease liabilities | 3,263) | 1,875) | 1,686) | 231) | —) | |
| Convertible senior notes, net | 624,451) | 621,535) | 573,350) | —) | —) | |
| Long-term finance lease liabilities | 45,385) | 40,508) | 26,173) | 2,399) | —) | |
| Total debt | 673,099) | 663,918) | 601,209) | 2,630) | —) | |
| Short-term operating lease liabilities | 16,183) | 12,728) | 10,994) | 9,590) | —) | |
| Long-term operating lease liabilities | 46,256) | 38,912) | 35,194) | 30,213) | —) | |
| Total debt (including operating lease liability) | 735,538) | 715,558) | 647,397) | 42,433) | —) | |
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 1,310,039) | 1,085,757) | 811,670) | 562,408) | |
| Total capital (including operating lease liability) | 2,911,904) | 2,025,597) | 1,733,154) | 854,103) | 562,408) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.25 | 0.35 | 0.37 | 0.05 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.05 | 0.09 | 0.09 | — | — | |
| Analog Devices Inc. | 0.16 | 0.16 | 0.31 | 0.32 | — | |
| Applied Materials Inc. | 0.32 | 0.32 | 0.35 | 0.39 | — | |
| Broadcom Inc. | 0.64 | 0.62 | 0.64 | 0.57 | — | |
| Intel Corp. | 0.30 | 0.29 | 0.31 | — | — | |
| KLA Corp. | 0.83 | 0.51 | 0.57 | 0.56 | — | |
| Lam Research Corp. | 0.45 | 0.46 | 0.54 | 0.49 | — | |
| Micron Technology Inc. | 0.13 | 0.14 | 0.16 | 0.14 | — | |
| NVIDIA Corp. | 0.31 | 0.31 | 0.18 | — | — | |
| Qualcomm Inc. | 0.47 | 0.62 | 0.73 | 0.76 | — | |
| Texas Instruments Inc. | 0.39 | 0.38 | 0.44 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.31 | 0.34 | 0.39 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.44 | 0.48 | 0.51 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 735,538 ÷ 2,911,904 = 0.25
2 Click competitor name to see calculations.
- Total Debt
- The total debt showed a significant increase from 2019 to 2020, rising sharply from approximately 42.4 million US dollars to around 647.4 million US dollars. This upward trend continued in the following years, with total debt reaching approximately 715.6 million US dollars in 2021 and further increasing to about 735.5 million US dollars in 2022. The data illustrates a substantial rise in debt levels over the period analyzed, indicating a growing reliance on borrowed funds or lease liabilities.
- Total Capital
- Total capital experienced consistent growth throughout the years. Starting from approximately 562.4 million US dollars in 2018, the figure increased to 854.1 million in 2019, then nearly doubled to approximately 1.73 billion in 2020. The growth continued in 2021 and 2022, reaching about 2.03 billion and 2.91 billion US dollars respectively. This steady increase in total capital suggests an expansion of the company’s financial base, potentially due to equity growth, retained earnings, or further capital inflows.
- Debt to Capital Ratio
- The debt to capital ratio reflected notable variations over the analyzed timeframe. In 2019, the ratio was low at 0.05, indicating minimal debt relative to the total capital. However, the ratio surged to 0.37 in 2020, corresponding to the sharp increase in total debt seen that year. Subsequently, the ratio slightly improved to 0.35 in 2021 and further improved to 0.25 in 2022. Despite this improvement from the peak in 2020, the ratio in 2022 remains significantly higher than in 2019, implying that the company's leverage increased overall but started to moderate as capital continued to grow.
Debt to Assets
SolarEdge Technologies Inc., debt to assets 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) | ||||||
| Short-term finance lease liabilities | 3,263) | 1,875) | 1,686) | 231) | —) | |
| Convertible senior notes, net | 624,451) | 621,535) | 573,350) | —) | —) | |
| Long-term finance lease liabilities | 45,385) | 40,508) | 26,173) | 2,399) | —) | |
| Total debt | 673,099) | 663,918) | 601,209) | 2,630) | —) | |
| Total assets | 4,265,949) | 2,892,060) | 2,437,109) | 1,494,624) | 964,472) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.16 | 0.23 | 0.25 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.04 | 0.03 | 0.04 | — | — | |
| Analog Devices Inc. | 0.13 | 0.13 | 0.24 | 0.26 | — | |
| Applied Materials Inc. | 0.20 | 0.21 | 0.24 | 0.28 | — | |
| Broadcom Inc. | 0.54 | 0.53 | 0.54 | 0.49 | — | |
| Intel Corp. | 0.23 | 0.23 | 0.24 | — | — | |
| KLA Corp. | 0.53 | 0.34 | 0.37 | 0.38 | — | |
| Lam Research Corp. | 0.29 | 0.31 | 0.40 | 0.37 | — | |
| Micron Technology Inc. | 0.10 | 0.12 | 0.12 | 0.12 | — | |
| NVIDIA Corp. | 0.25 | 0.24 | 0.11 | — | — | |
| Qualcomm Inc. | 0.32 | 0.38 | 0.44 | 0.48 | — | |
| Texas Instruments Inc. | 0.32 | 0.31 | 0.35 | — | — | |
| Debt to Assets, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.24 | 0.26 | 0.30 | — | — | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.29 | 0.31 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 673,099 ÷ 4,265,949 = 0.16
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a significant increase from 2,630 thousand US dollars in 2019 to 601,209 thousand US dollars in 2020, marking a substantial rise. This upward trend continued, albeit at a slower pace, reaching 663,918 thousand US dollars in 2021 and further to 673,099 thousand US dollars in 2022. The progression indicates a rapid accumulation of debt primarily between 2019 and 2020, followed by a more moderate increase in the subsequent years.
- Total Assets
- Total assets showed consistent growth throughout the period. Starting from 964,472 thousand US dollars in 2018, assets increased to 1,494,624 thousand US dollars in 2019, then rose sharply to 2,437,109 thousand US dollars in 2020. This growth trajectory continued through 2021 and 2022, reaching 2,892,060 thousand US dollars and 4,265,949 thousand US dollars, respectively. This steady and robust expansion indicates significant asset accumulation over the five years.
- Debt to Assets Ratio
- The debt to assets ratio was zero or negligible in 2018 and 2019, indicating minimal leverage during these years. In 2020, the ratio increased to 0.25, demonstrating that debt accounted for one quarter of total assets, reflecting a substantial increase in liabilities relative to assets. Subsequently, the ratio decreased to 0.23 in 2021 and further to 0.16 in 2022, suggesting improved balance sheet strength with a decline in relative debt load despite the rising nominal debt levels, likely due to the rapid expansion of total assets outpacing debt growth.
Debt to Assets (including Operating Lease Liability)
SolarEdge Technologies Inc., debt to assets (including operating lease liability) 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) | ||||||
| Short-term finance lease liabilities | 3,263) | 1,875) | 1,686) | 231) | —) | |
| Convertible senior notes, net | 624,451) | 621,535) | 573,350) | —) | —) | |
| Long-term finance lease liabilities | 45,385) | 40,508) | 26,173) | 2,399) | —) | |
| Total debt | 673,099) | 663,918) | 601,209) | 2,630) | —) | |
| Short-term operating lease liabilities | 16,183) | 12,728) | 10,994) | 9,590) | —) | |
| Long-term operating lease liabilities | 46,256) | 38,912) | 35,194) | 30,213) | —) | |
| Total debt (including operating lease liability) | 735,538) | 715,558) | 647,397) | 42,433) | —) | |
| Total assets | 4,265,949) | 2,892,060) | 2,437,109) | 1,494,624) | 964,472) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.17 | 0.25 | 0.27 | 0.03 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.04 | 0.06 | 0.06 | — | — | |
| Analog Devices Inc. | 0.14 | 0.14 | 0.25 | 0.26 | — | |
| Applied Materials Inc. | 0.22 | 0.22 | 0.26 | 0.28 | — | |
| Broadcom Inc. | 0.55 | 0.53 | 0.55 | 0.49 | — | |
| Intel Corp. | 0.23 | 0.23 | 0.24 | — | — | |
| KLA Corp. | 0.54 | 0.35 | 0.38 | 0.38 | — | |
| Lam Research Corp. | 0.30 | 0.33 | 0.41 | 0.37 | — | |
| Micron Technology Inc. | 0.11 | 0.12 | 0.13 | 0.12 | — | |
| NVIDIA Corp. | 0.27 | 0.27 | 0.15 | — | — | |
| Qualcomm Inc. | 0.33 | 0.40 | 0.46 | 0.48 | — | |
| Texas Instruments Inc. | 0.34 | 0.33 | 0.37 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.25 | 0.27 | 0.31 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.29 | 0.31 | 0.33 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 735,538 ÷ 4,265,949 = 0.17
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt exhibits a significant increase over the observed period. Starting from a value below the reported range in 2018, it rises sharply to 42,433 thousand US dollars in 2019. This upward trend continues dramatically in 2020, reaching 647,397 thousand US dollars, followed by a more moderate increase in 2021 and 2022, with total debt values of 715,558 and 735,538 thousand US dollars respectively. This indicates a rapid expansion in leverage, particularly between 2019 and 2020.
- Total assets
- Total assets demonstrate consistent growth throughout the period. Beginning at 964,472 thousand US dollars in 2018, the assets increase steadily each year to 1,494,624 thousand in 2019, 2,437,109 thousand in 2020, 2,892,060 thousand in 2021, and reach 4,265,949 thousand in 2022. This pattern reflects substantial asset accumulation, with the most pronounced increments observed between 2019 and 2020, and 2021 and 2022.
- Debt to assets ratio (including operating lease liability)
- The debt to assets ratio reveals dynamic changes in the company's leverage relative to its asset base. The ratio begins at a low level in 2019 of 0.03, indicating a low proportion of debt to assets. It then spikes sharply to 0.27 in 2020, suggesting a significant increase in leverage compared to assets. Subsequently, the ratio decreases to 0.25 in 2021 and declines further to 0.17 in 2022. This trend shows that despite the continued increase in total debt, the growth in total assets outpaces the debt increase from 2020 onwards, resulting in a more conservative leverage position in the later years.
- Overall insights
- The financial data reflect a period of substantial growth in both assets and debt from 2018 to 2022. The sharp rise in total debt between 2019 and 2020, alongside the corresponding increase in the debt to assets ratio, likely reflects strategic financing decisions to support expansion. However, from 2020 to 2022, although debt continues to increase, the asset base expands at a faster rate, improving the debt to assets ratio and indicating greater financial stability. This suggests a phase of consolidation where asset growth mitigates leverage risk. The evolving leverage pattern underscores a shift from aggressive borrowing towards a more balanced capital structure in recent years.
Financial Leverage
SolarEdge Technologies Inc., financial leverage 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) | ||||||
| Total assets | 4,265,949) | 2,892,060) | 2,437,109) | 1,494,624) | 964,472) | |
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 1,310,039) | 1,085,757) | 811,670) | 562,408) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.96 | 2.21 | 2.24 | 1.84 | 1.71 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 1.23 | 1.66 | 1.54 | — | — | |
| Analog Devices Inc. | 1.38 | 1.38 | 1.79 | 1.83 | — | |
| Applied Materials Inc. | 2.19 | 2.11 | 2.11 | 2.32 | — | |
| Broadcom Inc. | 3.23 | 3.03 | 3.18 | 2.71 | — | |
| Intel Corp. | 1.80 | 1.77 | 1.89 | — | — | |
| KLA Corp. | 8.99 | 3.04 | 3.48 | 3.39 | — | |
| Lam Research Corp. | 2.74 | 2.64 | 2.81 | 2.57 | — | |
| Micron Technology Inc. | 1.33 | 1.34 | 1.38 | 1.36 | — | |
| NVIDIA Corp. | 1.66 | 1.70 | 1.42 | — | — | |
| Qualcomm Inc. | 2.72 | 4.14 | 5.86 | 6.71 | — | |
| Texas Instruments Inc. | 1.87 | 1.85 | 2.11 | — | — | |
| Financial Leverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.79 | 1.89 | 2.08 | — | — | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.69 | 2.89 | 3.12 | — | — | |
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
Financial leverage = Total assets ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 4,265,949 ÷ 2,176,366 = 1.96
2 Click competitor name to see calculations.
The financial data illustrates several notable trends over the five-year period ending in 2022.
- Total Assets
- The total assets of the company experienced significant growth throughout the observed period. Beginning at approximately $964 million in 2018, total assets more than doubled by 2020, reaching nearly $2.44 billion. This upward trajectory continued, albeit at a slower pace, with assets increasing to approximately $2.89 billion in 2021 and accelerating further to about $4.27 billion by the end of 2022. This substantial increase reflects a strong asset base expansion, which may be indicative of increased operational capacity or investment in long-term resources.
- Total Stockholders’ Equity
- Stockholders' equity also demonstrated robust growth over the same timeframe. Starting from roughly $562 million in 2018, it climbed steadily each year, reaching approximately $1.09 billion in 2020 and continuing upward to about $1.31 billion in 2021. By 2022, equity had expanded significantly to nearly $2.18 billion. This consistent rise suggests positive retained earnings and possibly additional capital contributions, strengthening the company’s net worth and financial stability.
- Financial Leverage
- The financial leverage ratio exhibited a varying trend. It began at 1.71 in 2018, then increased to 1.84 in 2019 and saw a more pronounced rise to 2.24 in 2020. This peak suggests a higher level of debt relative to equity during that year. Subsequently, the leverage ratio declined slightly to 2.21 in 2021 and more noticeably to 1.96 in 2022. The downward movement in recent years may indicate a strategic effort to manage or reduce debt levels relative to equity, aligning with the observed growth in stockholders’ equity. Overall, leverage remains below the initial increase recorded in 2020, implying a moderate and potentially improved risk profile.
In summary, the data portrays a company with strong asset and equity growth, accompanied by a financial leverage ratio that peaked in 2020 but has since decreased, pointing to an improving capital structure and sustained financial development.
Interest Coverage
SolarEdge Technologies Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to SolarEdge Technologies, Inc. | 93,779) | 169,170) | 140,322) | 146,549) | 128,833) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | (1,592) | (787) | |
| Add: Income tax expense | 83,376) | 18,054) | 23,344) | 33,646) | 9,077) | |
| Add: Interest expenses | 11,538) | 10,665) | 10,120) | 5,826) | 3,211) | |
| Earnings before interest and tax (EBIT) | 188,693) | 197,889) | 173,786) | 184,429) | 140,334) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 16.35 | 18.55 | 17.17 | 31.66 | 43.70 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 14.61 | 109.09 | 28.23 | — | — | |
| Analog Devices Inc. | 16.46 | 8.19 | 7.79 | 7.49 | — | |
| Applied Materials Inc. | 34.33 | 29.69 | 18.36 | 14.79 | — | |
| Broadcom Inc. | 8.16 | 4.59 | 2.37 | 2.54 | — | |
| Intel Corp. | 16.66 | 37.35 | 40.87 | — | — | |
| KLA Corp. | 22.76 | 16.00 | 9.22 | 11.40 | — | |
| Lam Research Corp. | 29.11 | 21.95 | 15.51 | 21.86 | — | |
| Micron Technology Inc. | 51.66 | 35.18 | 16.41 | 56.09 | — | |
| NVIDIA Corp. | 43.12 | 24.96 | 58.12 | — | — | |
| Qualcomm Inc. | 31.61 | 19.38 | 10.50 | 12.93 | — | |
| Texas Instruments Inc. | 47.88 | 49.47 | 32.67 | — | — | |
| Interest Coverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 21.20 | 18.41 | 14.11 | — | — | |
| Interest Coverage, Industry | ||||||
| Information Technology | 22.63 | 19.89 | 14.12 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 188,693 ÷ 11,538 = 16.35
2 Click competitor name to see calculations.
- Earnings Before Interest and Tax (EBIT)
- The EBIT showed a generally positive trend from 2018 through 2021, increasing from 140,334 thousand USD in 2018 to a peak of 197,889 thousand USD in 2021. However, there was a slight decline in 2022, with EBIT falling to 188,693 thousand USD. Despite this decrease, the EBIT for 2022 remains significantly higher than the 2018 value, indicating overall growth in operating profitability over the five-year period.
- Interest Expenses
- Interest expenses demonstrated a consistent upward trend across the period under review. Starting at 3,211 thousand USD in 2018, interest expenses rose sharply to 11,538 thousand USD by 2022. This continuous increase suggests a growing cost of debt or higher levels of borrowing over time.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the ability to pay interest expenses from EBIT, showed a significant downward trend. From a high of 43.7 in 2018, the ratio declined steadily to 16.35 by 2022. This decline indicates that while EBIT increased initially, it did not keep pace with the rising interest expenses, reducing the margin of safety in covering interest payments and potentially signaling increased financial risk.
Fixed Charge Coverage
SolarEdge Technologies Inc., fixed charge coverage 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) | ||||||
| Net income attributable to SolarEdge Technologies, Inc. | 93,779) | 169,170) | 140,322) | 146,549) | 128,833) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | (1,592) | (787) | |
| Add: Income tax expense | 83,376) | 18,054) | 23,344) | 33,646) | 9,077) | |
| Add: Interest expenses | 11,538) | 10,665) | 10,120) | 5,826) | 3,211) | |
| Earnings before interest and tax (EBIT) | 188,693) | 197,889) | 173,786) | 184,429) | 140,334) | |
| Add: Operating lease cost | 15,901) | 14,890) | 12,741) | 9,665) | 6,231) | |
| Earnings before fixed charges and tax | 204,594) | 212,779) | 186,527) | 194,094) | 146,565) | |
| Interest expenses | 11,538) | 10,665) | 10,120) | 5,826) | 3,211) | |
| Operating lease cost | 15,901) | 14,890) | 12,741) | 9,665) | 6,231) | |
| Fixed charges | 27,439) | 25,555) | 22,861) | 15,491) | 9,442) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 7.46 | 8.33 | 8.16 | 12.53 | 15.52 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 6.82 | 36.00 | 13.08 | — | — | |
| Analog Devices Inc. | 12.87 | 6.64 | 6.48 | 5.62 | — | |
| Applied Materials Inc. | 24.67 | 22.50 | 14.48 | 12.35 | — | |
| Broadcom Inc. | 6.55 | 3.70 | 1.92 | 2.27 | — | |
| Intel Corp. | 7.34 | 16.56 | 25.00 | — | — | |
| KLA Corp. | 18.72 | 13.03 | 7.74 | 10.39 | — | |
| Lam Research Corp. | 21.44 | 17.80 | 12.52 | 17.83 | — | |
| Micron Technology Inc. | 31.49 | 22.49 | 11.10 | 32.90 | — | |
| NVIDIA Corp. | 25.61 | 14.40 | 18.89 | — | — | |
| Qualcomm Inc. | 22.52 | 14.48 | 8.30 | 10.68 | — | |
| Texas Instruments Inc. | 36.70 | 36.25 | 24.14 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 14.41 | 12.75 | 10.43 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 13.42 | 12.19 | 9.02 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 204,594 ÷ 27,439 = 7.46
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
-
The earnings before fixed charges and tax show a generally positive trend over the five-year period. Starting at $146,565 thousand in 2018, the value increased significantly to $194,094 thousand in 2019. The figure slightly declined to $186,527 thousand in 2020 but then continued upward to $212,779 thousand in 2021. A minor decrease occurred in 2022, with earnings recorded at $204,594 thousand. Overall, this reflects moderate growth with some fluctuations during the period.
- Fixed charges
-
Fixed charges have steadily increased throughout the analyzed timeframe. Beginning at $9,442 thousand in 2018, fixed charges rose each year, reaching $15,491 thousand in 2019 and further escalating to $22,861 thousand in 2020. This upward trend persisted with $25,555 thousand in 2021, culminating in $27,439 thousand in 2022. The consistent increase indicates growing financial obligations related to fixed costs.
- Fixed charge coverage ratio
-
The fixed charge coverage ratio exhibits a declining trend over the period. Starting from a robust ratio of 15.52 in 2018, it dropped to 12.53 in 2019. This decline accelerated in 2020, with the ratio falling to 8.16, and it remained relatively flat around 8.33 in 2021 before decreasing again to 7.46 in 2022. This decreasing ratio suggests that the earnings available to cover fixed charges are diminishing relative to the increasing fixed charges, indicating potentially higher financial risk or reduced buffer over fixed obligations.