SolarEdge Technologies Inc (SEDG)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	-877,204	-795,907	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
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
Gross profit margin		-97.31%	-76.04%	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%

December 31, 2024 calculation

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

SolarEdge Technologies Inc's gross profit margin has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The gross profit margin started at 33.64% in March 2020 and gradually decreased to 16.88% by March 31, 2024. This indicates a significant decrease in the percentage of revenue remaining after deducting the cost of goods sold.

The gross profit margin fluctuated over the periods, with some slight increases followed by more significant declines. For example, the margin increased slightly in the first half of 2021, reaching a peak of 32.72% in September 2021 before declining again. However, from December 31, 2023, to December 31, 2024, there was a sharp decrease in the gross profit margin, falling from 28.41% to -97.31%. This negative margin in December 2024 suggests that the company's cost of goods sold surpassed its revenue, resulting in a loss at the gross profit level.

These trends in the gross profit margin reflect potential challenges in maintaining profitability and controlling costs within SolarEdge Technologies Inc's operations. Further analysis of the company's cost structure and pricing strategies may be necessary to understand the factors driving these fluctuations in the gross profit margin.