SolarEdge Technologies Inc (SEDG)

Total 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
Total assets	US$ in thousands	2,630,200	4,587,730	4,265,950	2,900,950	2,437,110
Total asset turnover		0.34	0.65	0.73	0.68	0.60

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $901,456K ÷ $2,630,200K
= 0.34

The total asset turnover ratio for SolarEdge Technologies Inc has shown some fluctuations over the past five years. In December 31, 2020, the total asset turnover was 0.60, indicating that the company generated $0.60 in revenue for every $1 invested in total assets.

By December 31, 2021, the total asset turnover ratio had improved to 0.68, suggesting that the company became more efficient in utilizing its assets to generate revenue. This increase continued into December 31, 2022, reaching 0.73, which indicates a further enhancement in asset utilization efficiency.

However, in December 31, 2023, the total asset turnover ratio dropped to 0.65, signaling a slight decrease in the company's ability to generate revenue from its total assets. The most significant change occurred in December 31, 2024, where the total asset turnover ratio fell to 0.34, indicating a substantial decline in asset efficiency and revenue generation.

In conclusion, SolarEdge Technologies Inc should closely monitor its total asset turnover ratio to ensure optimal utilization of assets in generating revenue and consider strategies to improve efficiency, particularly in light of the sharp decline observed in December 31, 2024.