SolarEdge Technologies Inc (SEDG)

Total 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
Total assets	US$ in thousands	2,816,390	3,948,210	4,166,820	4,587,730	4,651,150	4,696,560	4,496,430	4,265,950	3,903,550	3,772,780	3,682,920	2,900,950	2,656,830	2,564,320	2,464,600	2,437,110	2,278,300	1,605,830	1,513,840	1,494,620
Total asset turnover		0.37	0.38	0.54	0.65	0.76	0.78	0.76	0.73	0.71	0.65	0.60	0.68	0.67	0.62	0.58	0.60	0.67	0.99	1.05	0.95

September 30, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,046,751K ÷ $2,816,390K
= 0.37

The total asset turnover ratio for SolarEdge Technologies Inc has been fluctuating over the past few quarters. It started at 0.95 in December 2019, increased to 1.05 by March 2020, but then decreased to around 0.60 by June 2020. The ratio gradually improved to around 0.76 by September 2020 but then dipped again.

In the latest quarter, September 2024, the total asset turnover stands at 0.37, which indicates that the company generated $0.37 in revenue for every $1 of total assets. This suggests that the company's efficiency in generating sales from its total assets has declined.

The declining trend of the total asset turnover ratio may indicate inefficiencies in the utilization of assets or changes in the business model impacting revenue generation. It would be important for the company to closely monitor and address the factors influencing this ratio to improve operational efficiency and profitability in the future.