SolarEdge Technologies Inc (SEDG)

Fixed asset turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Revenue (ttm)	US$ in thousands	1,046,751	1,511,153	2,237,038	2,976,528	3,551,186	3,662,604	3,399,088	3,110,279	2,771,492	2,461,173	2,213,456	1,963,865	1,770,057	1,581,748	1,433,542	1,459,271	1,519,387	1,591,848	1,585,007	1,425,660
Property, plant and equipment	US$ in thousands	423,905	595,623	605,223	614,579	604,819	580,503	556,138	543,969	491,433	489,109	473,511	410,379	353,344	340,319	312,214	303,408	257,717	226,416	195,982	176,963
Fixed asset turnover		2.47	2.54	3.70	4.84	5.87	6.31	6.11	5.72	5.64	5.03	4.67	4.79	5.01	4.65	4.59	4.81	5.90	7.03	8.09	8.06

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,046,751K ÷ $423,905K
= 2.47

The fixed asset turnover ratio for SolarEdge Technologies Inc has shown varying trends over the past several quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

From December 2019 to June 2020, there was a consistent increase in the fixed asset turnover ratio, indicating an improvement in the company's ability to generate revenue from its fixed assets. However, from September 2020 to March 2021, the ratio declined, suggesting a potential decrease in efficiency in utilizing fixed assets during that period.

Thereafter, from June 2021 to December 2023, there was a general upward trend in the fixed asset turnover ratio, reaching a peak of 6.31 in June 2023. This indicates improved efficiency and revenue generation from the company's fixed assets during this period.

However, from March 2024, there is a significant spike in the fixed asset turnover ratio, reaching 3.70 in March 2024, which further increased to 4.84 in December 2024. This substantial increase suggests a notable improvement in efficiency and revenue generation from fixed assets compared to the previous periods.

Overall, the fluctuating trend in the fixed asset turnover ratio for SolarEdge Technologies Inc indicates varying levels of efficiency in utilizing fixed assets to generate revenue over the analyzed periods.