SolarEdge Technologies Inc (SEDG)

Pretax margin

		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	Sep 30, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-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	180,195	82,106
Revenue (ttm)	US$ in thousands	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	1,425,660	1,271,107
Pretax margin		-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%	12.64%	6.46%

June 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-564,824K ÷ $1,511,153K
= -37.38%

The pretax margin of SolarEdge Technologies Inc has shown fluctuations over the period indicated in the table. The pretax margin measures the company's profitability before accounting for taxes, and a higher pretax margin indicates better profitability.

The company's pretax margin was negative in the most recent quarter, at -37.38%, indicating that the company's expenses and costs exceeded its revenues before accounting for taxes. This could be a red flag for investors as it suggests low profitability.

The pretax margin had been showing a general improving trend from December 2020 to March 2023, with positive values ranging from 5.70% to 13.22%. This indicated that the company was able to generate profits consistently during this period.

However, there was a noticeable decrease in the pretax margin in the last few quarters, dropping to 2.71% in December 2023 and turning negative in the subsequent quarters. This decline could be due to various factors such as increasing expenses, lower sales, or inefficiencies in operations.

Investors and analysts may need to closely monitor the company's financial performance and identify the reasons behind the decreasing pretax margins to assess the company's future profitability and financial stability.