SolarEdge Technologies Inc (SEDG)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	703,823	844,648	629,318	461,359	479,338
Revenue	US$ in thousands	2,976,530	3,110,280	1,963,860	1,459,270	1,425,660
Gross profit margin		23.65%	27.16%	32.04%	31.62%	33.62%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $703,823K ÷ $2,976,530K
= 23.65%

The gross profit margin of Solaredge Technologies Inc has shown a declining trend over the past five years. Starting at 33.62% in 2019, the margin decreased to 31.62% in 2020, further dropping to 32.04% in 2021, then to 27.16% in 2022, and ultimately to 23.65% in 2023. This decline suggests potential challenges in controlling the cost of goods sold compared to revenue generated from sales. It is important for the company to closely monitor and address the factors contributing to this downward trend to improve profitability and operational efficiency.