SolarEdge Technologies Inc (SEDG)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	2,630,200	2,816,390	3,948,210	4,166,820	4,587,730	4,651,150	4,696,560	4,496,430	4,265,950	3,903,550	3,772,780	3,682,920	2,900,950	2,656,830	2,564,320	2,464,600	2,437,110	2,278,300	1,605,830	1,513,840
Operating ROA		-64.95%	-58.82%	-14.90%	-6.66%	0.88%	5.86%	7.96%	5.77%	3.89%	5.44%	5.15%	5.81%	7.14%	6.79%	5.64%	4.82%	5.85%	7.84%	13.34%	15.17%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-1,708,292K ÷ $2,630,200K
= -64.95%

The operating return on assets (Operating ROA) of SolarEdge Technologies Inc has shown a declining trend from March 31, 2020, to December 31, 2024. The Operating ROA was relatively high at 15.17% on March 31, 2020, indicating efficient utilization of assets to generate operating income. However, the ratio decreased over subsequent periods, reaching a low of -64.95% on December 31, 2024, indicating that the company's operating income was negative in relation to its assets during that period.

This declining trend in Operating ROA suggests potential concerns regarding the company's operational efficiency and profitability. It is essential for management to assess the underlying reasons for the decreasing Operating ROA and take necessary actions to improve asset utilization and operating performance in order to enhance overall financial health and sustainability.