SolarEdge Technologies Inc (SEDG)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -1,158,386 | -1,623,923 | -564,824 | -268,019 | 80,749 | 347,458 | 431,484 | 299,443 | 177,155 | 160,745 | 162,493 | 194,608 | 187,224 | 177,317 | 162,813 | 150,527 | 163,666 | 200,878 | 203,616 | 208,427 |
| Revenue (ttm) | US$ in thousands | 901,456 | 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 |
| Pretax margin | -128.50% | -155.14% | -37.38% | -11.98% | 2.71% | 9.78% | 11.78% | 8.81% | 5.70% | 5.80% | 6.60% | 8.79% | 9.53% | 10.02% | 10.29% | 10.50% | 11.22% | 13.22% | 12.79% | 13.15% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-1,158,386K ÷ $901,456K
= -128.50%
The pretax margin of SolarEdge Technologies Inc has shown fluctuations over the periods outlined. The margin started around 13% in the first quarter of 2020 but declined gradually to below 10% by the end of 2021. In the first half of 2022, the margin dropped to around 6.6%, indicating a significant decrease in profitability.
However, there was a notable improvement in the pretax margin in the following quarters of 2023, reaching a peak of 11.78% in the second quarter. This improvement was short-lived as the margin sharply declined to only 2.71% by the end of 2023.
The pretax margin took a significant downturn in 2024, with negative values observed in each quarter, culminating in a drastic decrease to -128.50% in the last quarter. Such negative margins are concerning as they indicate that the company's operating expenses and other charges exceeded its income before taxes, resulting in substantial losses.
Overall, the downward trend of the pretax margin from 2021 to 2024 coupled with the sharp negative margins in 2024 suggests a deterioration in SolarEdge Technologies Inc's profitability and operational efficiency that requires closer attention and strategic actions to reverse the negative trend.
Peer comparison
Dec 31, 2024