SolarEdge Technologies Inc (SEDG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -1,708,290 | 40,205 | 166,120 | 207,139 | 142,561 |
| Total assets | US$ in thousands | 2,630,200 | 4,587,730 | 4,265,950 | 2,900,950 | 2,437,110 |
| Operating ROA | -64.95% | 0.88% | 3.89% | 7.14% | 5.85% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,708,290K ÷ $2,630,200K
= -64.95%
The operating return on assets (Operating ROA) for SolarEdge Technologies Inc has exhibited fluctuations over the five-year period from December 31, 2020, to December 31, 2024.
- In December 31, 2020, the Operating ROA stood at 5.85%, indicating that the company generated 5.85 cents of operating income for every dollar of assets employed.
- By December 31, 2021, SolarEdge Technologies Inc's Operating ROA improved to 7.14%, showing positive growth and efficiency in asset utilization.
- However, by December 31, 2022, the Operating ROA declined to 3.89%, suggesting a decrease in operating income generated per dollar of assets.
- This downward trend continued into December 31, 2023, with Operating ROA dropping significantly to 0.88%, indicating deteriorating efficiency in asset utilization and profitability.
- Notably, by December 31, 2024, SolarEdge Technologies Inc experienced a drastic negative Operating ROA of -64.95%, signifying that the company's operating income was negative in relation to its assets, which may be a concern for stakeholders.
Overall, the trend in SolarEdge Technologies Inc's Operating ROA shows variability in the company's ability to generate operating income relative to its asset base, with a notable decline in performance in the latter years of the period under review.
Peer comparison
Dec 31, 2024