SolarEdge Technologies Inc (SEDG)

Return on assets (ROA)

		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	Dec 31, 2019
Net income (ttm)	US$ in thousands	-1,655,832	-511,688	-261,360	34,329	217,541	303,460	199,034	93,779	113,904	142,209	172,217	169,170	145,871	136,574	128,150	140,322	175,445	173,321	169,781	146,549
Total assets	US$ in thousands	2,816,390	3,948,210	4,166,820	4,587,730	4,651,150	4,696,560	4,496,430	4,265,950	3,903,550	3,772,780	3,682,920	2,900,950	2,656,830	2,564,320	2,464,600	2,437,110	2,278,300	1,605,830	1,513,840	1,494,620
ROA		-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%	9.81%

September 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-1,655,832K ÷ $2,816,390K
= -58.79%

SolarEdge Technologies Inc's return on assets (ROA) has shown a declining trend over the past few quarters. The ROA was negative in the most recent quarter, at -58.79%, indicating that the company's assets were not effectively generating profit. This was a significant decrease from the previous quarter, where the ROA was -12.96%.

Looking at the historical data, there has been a general downward trend in ROA since the peak of 11.22% in the first quarter of 2020. This suggests that SolarEdge's efficiency in utilizing its assets to generate profits has deteriorated over time.

The company needs to focus on improving its asset management efficiency and profitability in order to reverse this downward trend and enhance shareholder value in the long term. It may be important for investors and analysts to closely monitor the company's operational performance and strategic decisions to assess whether these efforts are successful in improving the ROA metric.