SEDGCAUTIOUS

Debt-to-Equity Ratio

0.81x

Higher than 52% of Energy sector peers

Updated 461h ago

Sector Performance

52th percentile

SEDG

0.81x

Sector Median

0.74x

Sector Avg

1.14x

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Deep Analysis

The debt-to-equity ratio measures how much a company uses borrowed money (debt) versus shareholder funds (equity) to finance its operations.

A ratio of 0.81x means SolarEdge has 81 cents of debt for every dollar of equity, indicating a moderate reliance on debt. This is slightly above the Energy sector median of 0.68x, placing the company in the 53rd percentile among sector peers—meaning its leverage is a touch higher than half of its competitors. The year-over-year change is not available, but the ratio has decreased by 14.7% quarter-over-quarter, dropping from 0.95x to 0.81x. A declining debt-to-equity ratio typically reduces financial risk by lowering the company’s dependence on borrowed capital, which is favorable for investors concerned about balance sheet strength. However, the current level remains above the sector median, so the combination of above-average leverage with a improving trend suggests moderate risk that is being managed. This metric supports the overall NEUTRAL verdict: the debt level is not alarming but warrants attention alongside other financial indicators.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about SEDG?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does SEDG's Debt-to-Equity Ratio compare to its sector?

SEDG's Debt-to-Equity Ratio of 0.81x compares to a Energy sector median of 0.74x, placing it in the 52th percentile.

Who are SEDG's closest peers by Debt-to-Equity Ratio?

The closest Energy peers by Debt-to-Equity Ratio include: REI (0.68x), APA (0.68x), MTDR (0.62x), AR (0.59x), ESTE (0.95x).

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

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SEDG

0.81x

Sector Median

0.74x

Sector Avg

1.14x

How SEDG's Debt-to-Equity Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.