SolarEdge Technologies Inc (SEDG)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-1,254,540	290,024	93,779	169,170	140,322
Total assets	US$ in thousands	2,630,200	4,587,730	4,265,950	2,900,950	2,437,110
ROA		-47.70%	6.32%	2.20%	5.83%	5.76%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-1,254,540K ÷ $2,630,200K
= -47.70%

Based on the provided data, SolarEdge Technologies Inc's return on assets (ROA) has shown a fluctuating trend over the past five years.

In December 2020, the ROA was at 5.76%, indicating that the company generated $0.0576 in profit for every $1 of assets it possessed. The ROA slightly increased to 5.83% by December 2021, suggesting a slight improvement in efficiency in generating profits from its assets.

However, a significant decline was observed in December 2022, with the ROA dropping to 2.20%, possibly signaling challenges in asset utilization or profitability during that period. The following year, December 2023, saw a notable recovery in ROA to 6.32%, indicating improved profitability relative to the assets employed.

Interestingly, by December 2024, the ROA experienced a substantial negative turn, plummeting to -47.70%. This sharp decline suggests that the company's assets may not have been effectively utilized to generate profits, potentially indicating operational or financial challenges during that period.

In conclusion, SolarEdge Technologies Inc's ROA has exhibited variability, ranging from healthy levels to significant declines over the past five years. It would be essential for the company to assess the causes behind these fluctuations and take appropriate measures to sustain and enhance its profitability relative to its asset base in the future.