SolarEdge Technologies Inc (SEDG)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	901,456	2,976,530	3,110,280	1,963,860	1,459,270
Property, plant and equipment	US$ in thousands	343,438	614,579	543,969	410,379	303,408
Fixed asset turnover		2.62	4.84	5.72	4.79	4.81

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $901,456K ÷ $343,438K
= 2.62

SolarEdge Technologies Inc fixed asset turnover has shown fluctuation over the past five years. In 2020, the company's fixed asset turnover was 4.81, indicating that it generated $4.81 in revenue for every dollar of fixed assets. The ratio decreased slightly to 4.79 in 2021.

However, there was a significant improvement in 2022, with the fixed asset turnover ratio increasing to 5.72, suggesting that the company effectively utilized its fixed assets to generate revenue. This positive trend was not sustained as the ratio dropped back to 4.84 in 2023.

The most significant change occurred in 2024 when the fixed asset turnover ratio dropped sharply to 2.62. This decline could indicate either a decrease in revenue generated from fixed assets or an increase in the carrying amount of fixed assets on the company's balance sheet.

Overall, SolarEdge Technologies Inc's fixed asset turnover ratio has varied over the years, indicating fluctuations in the efficiency of the company's utilization of its fixed assets to generate revenue. Further investigation into the reasons behind these fluctuations would be necessary to assess the company's operational efficiency and financial performance.