SolarEdge Technologies Inc (SEDG)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	-877,204	703,823	844,648	629,318	461,359
Revenue	US$ in thousands	901,456	2,976,530	3,110,280	1,963,860	1,459,270
Gross profit margin		-97.31%	23.65%	27.16%	32.04%	31.62%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $-877,204K ÷ $901,456K
= -97.31%

The gross profit margin of SolarEdge Technologies Inc has shown some fluctuations over the years based on the provided data.

As of December 31, 2020, the gross profit margin was 31.62%, indicating that the company was able to maintain a relatively healthy margin on its sales after deducting the cost of goods sold.

By December 31, 2021, the gross profit margin slightly improved to 32.04%, suggesting a favorable trend in operational efficiency and pricing strategies.

However, there was a notable decline in the gross profit margin to 27.16% by December 31, 2022, possibly indicating challenges in managing production costs or changes in pricing dynamics.

The trend continued with a further decrease to 23.65% by December 31, 2023, highlighting potential pressures on profitability margins.

The data point for December 31, 2024, showing a gross profit margin of -97.31%, appears anomalous and raises concerns about the accuracy or completeness of the financial information provided.

Overall, the analysis suggests that SolarEdge Technologies Inc has experienced varying levels of gross profit margin performance, with some years showing improvements and others demonstrating challenges that may require further investigation and strategic actions to sustain profitability.