SolarEdge Technologies Inc (SEDG)

Total 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
Total assets	US$ in thousands	2,630,200	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
Total asset turnover		0.34	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

December 31, 2024 calculation

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

The total asset turnover ratio measures a company's efficiency in generating sales revenue from its total assets. In the case of SolarEdge Technologies Inc, the total asset turnover has fluctuated over the reporting periods provided.

From March 31, 2020, to December 31, 2020, the total asset turnover decreased from 1.05 to 0.60, indicating a decline in the company's ability to generate sales from its assets. This trend continued into March 31, 2021, reaching 0.58.

From June 30, 2021, to December 31, 2024, there were fluctuations in the total asset turnover ratio, ranging from 0.38 to 0.78. Notably, the ratio reached its lowest point at 0.34 by the end of December 31, 2024.

The decreasing trend in the total asset turnover ratio signifies that SolarEdge Technologies Inc may be facing challenges in efficiently utilizing its assets to generate sales revenue. Further analysis and investigation into the company's operations and asset management practices may be necessary to address this issue.