SolarEdge Technologies Inc (SEDG)

Operating 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
Operating income (ttm)	US$ in thousands	-588,194	-277,654	40,205	272,623	373,756	259,410	166,120	212,321	194,328	213,875	207,139	180,528	144,508	118,914	142,561	178,662	214,285	229,673	189,946	102,861
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
Operating profit margin		-38.92%	-12.41%	1.35%	7.68%	10.20%	7.63%	5.34%	7.66%	7.90%	9.66%	10.55%	10.20%	9.14%	8.30%	9.77%	11.76%	13.46%	14.49%	13.32%	8.09%

June 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-588,194K ÷ $1,511,153K
= -38.92%

The operating profit margin of SolarEdge Technologies Inc has shown fluctuating trends over the past few quarters. The margin started at 8.09% in Q4 2019, increased steadily to reach its peak at 14.49% in Q2 2020, before showing a gradual decline. However, there was a slight improvement in the margin from Q1 2021 to Q3 2021, where it ranged between 9.77% to 10.55%.

From Q4 2021 to Q2 2024, the operating profit margin experienced significant fluctuations, dropping to negative levels in Q2 2024 (-38.92%) after a low of -12.41% in Q1 2024. Although the margin improved to positive figures in Q3 2023 and Q4 2023, it did not sustain those levels.

The negative operating profit margins in recent quarters indicate that SolarEdge Technologies Inc is facing challenges in generating profits from its core operations. It may need to focus on improving operational efficiency, cost management, and revenue generation strategies to enhance its profitability in the future.