SolarEdge Technologies Inc (SEDG)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 40,205 | 166,120 | 207,139 | 142,561 | 189,946 |
| Revenue | US$ in thousands | 2,976,530 | 3,110,280 | 1,963,860 | 1,459,270 | 1,425,660 |
| Operating profit margin | 1.35% | 5.34% | 10.55% | 9.77% | 13.32% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $40,205K ÷ $2,976,530K
= 1.35%
Solaredge Technologies Inc's operating profit margin has shown a declining trend over the past five years, decreasing from 14.04% in 2019 to 2.40% in 2023. This indicates that the company's ability to generate profits from its core operations has weakened over time. The significant drop in operating profit margin from 2022 to 2023 suggests challenges in controlling operating expenses or declining revenues relative to costs. Further analysis is recommended to identify the specific factors contributing to the declining operating profit margin and to develop strategies to improve operational efficiency and profitability.
Peer comparison
Dec 31, 2023