SolarEdge Technologies Inc (SEDG)

Operating 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
Operating income (ttm)	US$ in thousands	-1,708,292	-1,656,738	-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
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
Operating profit margin		-189.50%	-158.27%	-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%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-1,708,292K ÷ $901,456K
= -189.50%

SolarEdge Technologies Inc's operating profit margin has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The margin started at a healthy level of 14.49% in March 31, 2020, but gradually decreased to as low as -189.50% by the end of December 31, 2024.

There was a notable decrease in the operating profit margin from June 30, 2022, to December 31, 2024, where it fell from 7.90% to -189.50%. This decline indicates challenges in the company's ability to control operating expenses relative to its revenue generation.

It is important to note that a negative operating profit margin, as seen in the latter periods, signals that the company is incurring operating losses rather than profits. This could be a concerning sign for investors and stakeholders, suggesting a need for strategic changes to improve the company's operational efficiency and profitability.