SolarEdge Technologies Inc (SEDG)

Fixed asset turnover

		Dec 31, 2024	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
Revenue (ttm)	US$ in thousands	901,456	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
Property, plant and equipment	US$ in thousands	343,438	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
Fixed asset turnover		2.62	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

December 31, 2024 calculation

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

Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better efficiency in generating sales from investments in property, plant, and equipment.

For SolarEdge Technologies Inc, the fixed asset turnover has been fluctuating over the periods provided in the data. The ratio was relatively high in the range of 4.59 to 8.09 from March 31, 2020, to June 30, 2020. However, it started to decline steadily, reaching a low of 2.47 on September 30, 2024. This suggests a decrease in the company's ability to generate sales from its fixed assets.

From June 30, 2022, onward, the fixed asset turnover began to show a slight recovery, increasing to 6.31 by June 30, 2023. This indicates some improvement in the company's efficiency in utilizing its fixed assets to generate revenue.

Overall, the trend in SolarEdge Technologies Inc's fixed asset turnover suggests a period of declining efficiency followed by a partial recovery. It would be important for the company to continue monitoring and managing its fixed assets effectively to improve its operational efficiency and profitability in the long term.