SolarEdge Technologies Inc (SEDG)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	34,329	93,779	169,170	140,322	146,549
Total assets	US$ in thousands	4,587,730	4,265,950	2,900,950	2,437,110	1,494,620
ROA		0.75%	2.20%	5.83%	5.76%	9.81%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $34,329K ÷ $4,587,730K
= 0.75%

Solaredge Technologies Inc's return on assets (ROA) has seen a declining trend over the past five years. The ROA stood at 9.81% in 2019 but has since decreased to 5.76% in 2020, further dropping to 5.85% in 2021, and then to 2.20% in 2022. By the end of 2023, Solaredge Technologies Inc's ROA was at 0.75%. This decline in ROA indicates that the company's ability to generate profit from its assets has been decreasing over the years. It is essential for Solaredge Technologies Inc to identify the factors contributing to this trend and implement strategies to improve its return on assets in the future.