SolarEdge Technologies Inc (SEDG)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	4,587,730	4,265,950	2,900,950	2,437,110	1,494,620
Operating ROA		0.88%	3.89%	7.14%	5.85%	12.71%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $40,205K ÷ $4,587,730K
= 0.88%

Solaredge Technologies Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. The operating ROA decreased from 13.39% in 2019 to 5.71% in 2020, indicating a decline in the company's ability to generate operating income from its total assets. However, the operating ROA improved to 7.21% in 2021 and further increased to 6.63% in 2022 before declining to 1.56% in 2023.

The decreasing trend in operating ROA from 2021 to 2023 may suggest potential challenges in efficiently utilizing the company's assets to generate operating income. Further analysis would be required to determine the specific factors contributing to these fluctuations and to assess the company's operational performance and asset management strategies.