SolarEdge Technologies Inc (SEDG)

Operating profit margin

		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	Dec 31, 2019
Operating income (ttm)	US$ in thousands	-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	189,946
Revenue (ttm)	US$ in thousands	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	1,425,660
Operating profit margin		-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%	13.32%

September 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-1,656,738K ÷ $1,046,751K
= -158.27%

The operating profit margin of SolarEdge Technologies Inc has shown a fluctuating trend over the past few years. The margin was negative in the most recent quarter of September 2024, indicating that the company's operating expenses exceeded its gross profit. However, the margin had been improving in the preceding quarters, reaching positive levels in December 2023 and showing a peak of 14.49% in March 2020.

The variability in the operating profit margin suggests that SolarEdge may be experiencing challenges in effectively managing its operating expenses relative to its revenue generation. Investors and analysts may want to closely monitor the company's efforts to control costs and improve operational efficiency to ensure sustained profitability and long-term growth.