SolarEdge Technologies Inc (SEDG)

Gross profit margin

		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	Sep 30, 2019
Gross profit (ttm)	US$ in thousands	49,236	377,510	703,823	1,021,295	1,100,479	965,816	844,648	744,092	694,652	668,202	629,318	579,152	514,654	461,425	461,359	494,283	525,529	533,236	479,338	256,847
Revenue (ttm)	US$ in thousands	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	1,271,107
Gross profit margin		3.26%	16.88%	23.65%	28.76%	30.05%	28.41%	27.16%	26.85%	28.22%	30.19%	32.04%	32.72%	32.54%	32.19%	31.62%	32.53%	33.01%	33.64%	33.62%	20.21%

June 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $49,236K ÷ $1,511,153K
= 3.26%

The gross profit margin of SolarEdge Technologies Inc has exhibited fluctuations over the past few quarters. The trend shows a decline in the gross profit margin from a high of 33.64% in March 2020 to a low of 3.26% in June 2024. This decline may raise concerns about the company's ability to effectively manage its cost of goods sold.

It is important to note that a declining gross profit margin can be an indication of various factors such as increasing production costs, pricing pressures, or inefficient operations. Conversely, an increasing trend in the gross profit margin from September 2019 to March 2020 showed positive momentum, reaching a peak of 33.64%.

The recent low gross profit margin in June 2024 is a noteworthy point for further analysis to understand the underlying reasons and assess the company's strategies moving forward. Investors and stakeholders should closely monitor future financial results to see if the company can improve its gross profit margin and maintain profitability.