SolarEdge Technologies Inc (SEDG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 1,494,620 |
| Operating ROA | -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% | 12.71% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-1,656,738K ÷ $2,816,390K
= -58.82%
Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its operations relative to its total assets. For SolarEdge Technologies Inc, the trend in operating ROA over the past few quarters has been fluctuating.
The operating ROA for SolarEdge Technologies Inc has shown a downward trend from Dec 2019 to Sep 2024, with negative values recorded in the recent quarters. This indicates that the company is facing challenges in generating profits from its operating activities relative to its asset base. The negative operating ROA figures suggest that the company's operating income is not sufficient to cover its asset base, which raises concerns about its operational efficiency and profitability.
It is important for investors and stakeholders to closely monitor SolarEdge Technologies Inc's operating ROA performance and assess the company's operational efficiency and profitability. Management should focus on improving the company's earnings from its core operations and optimizing the utilization of its assets to enhance financial performance and shareholder value.
Peer comparison
Sep 30, 2024