SolarEdge Technologies Inc (SEDG)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	34,329	93,779	169,170	140,322	146,549
Revenue	US$ in thousands	2,976,530	3,110,280	1,963,860	1,459,270	1,425,660
Net profit margin		1.15%	3.02%	8.61%	9.62%	10.28%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $34,329K ÷ $2,976,530K
= 1.15%

The net profit margin of Solaredge Technologies Inc has been gradually decreasing over the past five years, declining from 10.28% in 2019 to 1.15% in 2023. This downward trend suggests that the company's profitability relative to its revenue has weakened over time. Factors contributing to this decline could include rising costs, pricing pressures, or inefficiencies in cost management. It is important for Solaredge to closely monitor and address the reasons behind this decreasing trend in order to improve its profitability and financial performance in the future.