SolarEdge Technologies Inc (SEDG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | -97.31% | -76.04% | 3.26% | 16.88% | 23.65% | 28.76% | 30.05% | 28.41% | 27.16% | 26.85% | 28.22% | 30.19% | 32.04% | 32.72% | 32.54% | 32.19% | 31.62% | 32.53% | 33.01% | 33.64% |
| Operating profit margin | -189.50% | -158.27% | -38.92% | -12.41% | 1.35% | 7.68% | 10.20% | 7.63% | 5.34% | 7.66% | 7.90% | 9.66% | 10.55% | 10.20% | 9.14% | 8.30% | 9.77% | 11.76% | 13.46% | 14.49% |
| 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% |
| Net profit margin | -139.17% | -158.19% | -33.86% | -11.68% | 1.15% | 6.13% | 8.29% | 5.86% | 3.02% | 4.11% | 5.78% | 7.78% | 8.61% | 8.24% | 8.63% | 8.94% | 9.62% | 11.55% | 10.89% | 10.71% |
SolarEdge Technologies Inc's profitability ratios have shown a declining trend over the past few years. The gross profit margin, which represents the percentage of revenue retained after deducting the cost of goods sold, has decreased from 33.64% as of March 31, 2020, to 23.65% as of December 31, 2023, indicating a decrease in efficiency in generating profits from sales.
The operating profit margin, which indicates the company's ability to generate profits from its core operations, has also followed a downward trajectory, falling from 14.49% on March 31, 2020, to -189.50% by December 31, 2024. This suggests significant challenges in controlling operating expenses and maintaining profitability.
Similarly, the pretax margin, showing the proportion of earnings before taxes out of total revenue, has dwindled from 13.15% in March 31, 2020, to -128.50% by December 31, 2024. This decline highlights the company's struggles in managing expenses and optimizing its tax strategies.
Furthermore, the net profit margin, which reveals the final percentage of revenue retained as net profit after all expenses have been deducted, has also witnessed a substantial downturn from 10.71% on March 31, 2020, to -139.17% as of December 31, 2024. This indicates a significant erosion in profitability and efficiency in converting sales into bottom-line profits.
Overall, the decreasing trend in profitability ratios for SolarEdge Technologies Inc underscores the company's challenges in maintaining healthy profit levels and operational efficiency. The management may need to review its cost structures, revenue generation strategies, and overall financial health to improve profitability and long-term sustainability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -47.70% | -58.79% | -12.96% | -6.27% | 0.75% | 4.68% | 6.46% | 4.43% | 2.20% | 2.92% | 3.77% | 4.68% | 5.83% | 5.49% | 5.33% | 5.20% | 5.76% | 7.70% | 10.79% | 11.22% |
| Return on total capital | -172.84% | -128.83% | -21.43% | -9.68% | 1.32% | 8.75% | 11.88% | 8.72% | 5.93% | 7.93% | 7.33% | 8.12% | 8.11% | 10.51% | 8.88% | 7.80% | 7.07% | 11.15% | 23.17% | 26.51% |
| Return on equity (ROE) | -190.56% | -173.14% | -24.29% | -11.66% | 1.42% | 8.74% | 12.04% | 8.47% | 4.31% | 5.55% | 7.01% | 8.57% | 12.91% | 11.74% | 11.60% | 11.65% | 12.92% | 17.00% | 18.74% | 19.60% |
SolarEdge Technologies Inc has shown a declining trend in profitability ratios over the past few quarters.
- Operating return on assets (Operating ROA) decreased from 15.17% in March 2020 to 0.88% in December 2023, with a slight improvement to 5.44% in September 2022 before dropping to -64.95% by December 2024.
- Return on assets (ROA) followed a similar pattern, decreasing from 11.22% in March 2020 to -47.70% in December 2024.
- Return on total capital also showed a downward trend, declining from 26.51% in March 2020 to -172.84% in December 2024.
- Return on equity (ROE) decreased from 19.60% in March 2020 to -190.56% in December 2024.
Overall, the decreasing trend in the profitability ratios of SolarEdge Technologies Inc indicates a concerning decline in the company's ability to generate profits relative to its assets, capital, and equity over the analyzed period.
See also:
SolarEdge Technologies Inc Profitability Ratios (Quarterly Data)