SolarEdge Technologies Inc (SEDG)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	-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	45,608
Total assets	US$ in thousands	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	1,337,590
ROA		-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%	3.41%

June 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-511,688K ÷ $3,948,210K
= -12.96%

SolarEdge Technologies Inc has experienced fluctuations in its return on assets (ROA) over the past few quarters. The ROA was negative in the most recent quarter at -12.96%, indicating that the company generated a net loss in relation to its total assets. This decline in ROA may suggest inefficiencies in asset utilization or declining profitability.

Looking back over the last few quarters, the ROA has shown a general downward trend since reaching a peak of 11.22% in March 2020. While the ROA improved in the following quarters, it has not yet returned to those levels. The decreasing trend in ROA could indicate challenges in maintaining profitability relative to the assets employed by the company.

It is important for SolarEdge Technologies Inc to closely monitor its asset management and profitability to enhance its ROA in the future. Management should focus on improving operational efficiency, reducing costs, and maximizing returns on investments to drive ROA back to healthier levels. Additionally, the company may need to assess its overall business strategy and market conditions to identify opportunities for growth and value creation that can positively impact its ROA over the long term.