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SolarEdge Technologies Financial Strength

: 7 (As of Jun. 2022)
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SolarEdge Technologies has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

SolarEdge Technologies's Interest Coverage for the quarter that ended in Jun. 2022 was 2.84. SolarEdge Technologies's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.25. As of today, SolarEdge Technologies's Altman Z-Score is 7.55.


Competitive Comparison

For the Solar subindustry, SolarEdge Technologies's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

SolarEdge Technologies Financial Strength Distribution

For the Semiconductors industry and Technology sector, SolarEdge Technologies's Financial Strength distribution charts can be found below:

* The bar in red indicates where SolarEdge Technologies's Financial Strength falls into.



SolarEdge Technologies Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

SolarEdge Technologies's Interest Expense for the months ended in Jun. 2022 was $-14 Mil. Its Operating Income for the months ended in Jun. 2022 was $41 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $713 Mil.

SolarEdge Technologies's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*40.699/-14.311
=2.84

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

SolarEdge Technologies's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(15.313 + 712.52) / 2911.096
=0.25

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

SolarEdge Technologies has a Z-score of 7.55, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 7.55 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


SolarEdge Technologies  (NAS:SEDG) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

SolarEdge Technologies has the Financial Strength Rank of 7.


SolarEdge Technologies Financial Strength Related Terms

Thank you for viewing the detailed overview of SolarEdge Technologies's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


SolarEdge Technologies Business Description

SolarEdge Technologies logo
Traded in Other Exchanges
Address
1 HaMada Street, Post Box 12001, Herziliya Pituach, ISR, 4673335
SolarEdge Technologies designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations. The company's systems consist of power optimizers, inverters, and cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. The company sells its products directly to solar installers, engineering, procurement, and construction firms and indirectly to solar installers through distributors and electrical equipment wholesalers. Additionally, the company has nonsolar products targeting the energy storage, e-mobility, and ultracritical power solutions industries.
Executives
Hoke Dirk director 251 RHODE ISLAND STREET SUITE 204 SAN FRANCISCO CA 94103
Atkins Betsy S director
Bechor Uri officer: Chief Operating Officer 1 HAMADA STREET HERZILIYA PITUACH L3 4673335
Zafrir Nadiv director 555 WEST 59 STREET APT 19B NEW YORK NY 10019
Opus Capital Venture Partners V, L.p. 10 percent owner 2730 SAND HILL ROAD, SUITE 150 MENLO PARK CA 94025
Gani Marcel director 142 ALMENDRAL AVE ATHERTON CA 94027
Payne Tal director 1 HAMADA STREET HERZILIYA PITUACH L3 4673335
Lando Zvi officer: Vice President, Global Sales 1 HAMADA STREET HERZILIYA PITUACH L3 4673335
Schaepe Christopher J 10 percent owner
Farris Chester A. director 28145 HOLLYBERRY LANE YORBA LINDA CA 92887
Pacven Walden Management Vi Co. Ltd. 10 percent owner ONE CALIFORNIA STREET, 28TH FLOOR SAN FRANCISCO CA 94111
Pacven Walden Ventures Parallel Vi L P 10 percent owner ONE CALIFORNIA ST SUITE 2800 SAN FRANCISCO CA 94111
Pacven Walden Ventures Vi Lp 10 percent owner One California St. Suite 2800 San Francisco CA 94111
Genesis Partners Iii Lp 10 percent owner POB 12866 HERTZLYIA PITUACH L3 46733
Haque Promod 10 percent owner C/O NORWEST VENTURE PARTNERS 525 UNIVERSITY AVENUE, SUITE 800 PALO ALTO CA 94301

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