SolarEdge Technologies Inc (SEDG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,976,530 | 3,110,280 | 1,963,860 | 1,459,270 | 1,425,660 |
| Property, plant and equipment | US$ in thousands | 614,579 | 543,969 | 410,379 | 303,408 | 176,963 |
| Fixed asset turnover | 4.84 | 5.72 | 4.79 | 4.81 | 8.06 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,976,530K ÷ $614,579K
= 4.84
Fixed asset turnover measures how efficiently a company generates sales from its investment in fixed assets. Solaredge Technologies Inc's fixed asset turnover has fluctuated over the past five years, ranging from a low of 4.79 in 2021 to a high of 8.06 in 2019. In 2023, the fixed asset turnover was 4.84, indicating that for every dollar invested in fixed assets, the company generated $4.84 in sales.
The decline in fixed asset turnover from 2022 to 2023 may suggest a decrease in sales relative to the investment in fixed assets. However, it is important to consider the industry's standards and company-specific factors when analyzing this ratio. Overall, Solaredge Technologies Inc should further evaluate its fixed asset utilization to optimize its asset productivity and improve efficiency in generating sales.
Peer comparison
Dec 31, 2023