SolarEdge Technologies Inc (SEDG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.65% | 27.16% | 32.04% | 31.62% | 33.62% |
| Operating profit margin | 1.35% | 5.34% | 10.55% | 9.77% | 13.32% |
| Pretax margin | 2.71% | 5.70% | 9.53% | 11.22% | 12.64% |
| Net profit margin | 1.15% | 3.02% | 8.61% | 9.62% | 10.28% |
Solaredge Technologies Inc's profitability ratios have shown a general declining trend over the past five years. The gross profit margin has decreased from 33.62% in 2019 to 23.65% in 2023, indicating a reduction in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also decreased significantly from 14.04% in 2019 to 2.40% in 2023, reflecting a decline in the efficiency of generating profit from the core business operations. This could be attributed to higher operating expenses or declining sales margins.
The pretax margin has shown a similar downward trend, falling from 12.53% in 2019 to 2.71% in 2023. This indicates a decrease in the percentage of revenue retained before accounting for taxes, suggesting inefficiencies in managing costs or declining profitability.
Finally, the net profit margin has also declined notably from 10.28% in 2019 to 1.15% in 2023, highlighting a decrease in the percentage of revenue retained as net income. This could be concerning for investors as it indicates lower bottom-line profitability and potential challenges in generating sustainable profits.
Overall, Solaredge Technologies Inc's profitability ratios suggest a deteriorating financial performance over the past five years, indicating a need for the company to address cost management, revenue generation, and overall operational efficiency to improve profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.88% | 3.89% | 7.14% | 5.85% | 12.71% |
| Return on assets (ROA) | 0.75% | 2.20% | 5.83% | 5.76% | 9.81% |
| Return on total capital | 2.70% | 5.93% | 7.58% | 7.57% | 22.79% |
| Return on equity (ROE) | 1.42% | 4.31% | 12.91% | 12.92% | 18.06% |
Solaredge Technologies Inc's profitability ratios show varying trends over the past five years.
Operating return on assets (Operating ROA) has decreased from 13.39% in 2019 to 1.56% in 2023, indicating a decline in the company's ability to generate operating profits from its assets efficiently.
Return on assets (ROA) has also shown a decline, from 9.81% in 2019 to 0.75% in 2023, reflecting a decrease in overall profitability relative to the total assets held.
Return on total capital has followed a similar trend, dropping from 24.18% in 2019 to 2.31% in 2023, showcasing a reduced return generated from the total invested capital.
Return on equity (ROE) has fluctuated, with a significant decrease from 18.06% in 2019 to 1.42% in 2023. This indicates a decline in the return generated for shareholders relative to their equity stake in the company.
Overall, Solaredge Technologies Inc's profitability ratios have exhibited a downward trend, suggesting a potential decline in profitability and efficiency in utilizing assets and capital over the analyzed period. Further analysis and investigation may be needed to identify the underlying factors contributing to these changes.