SolarEdge Technologies Inc (SEDG)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	658,342	2,411,910	2,176,370	1,310,040	1,085,760
ROE		-190.56%	12.02%	4.31%	12.91%	12.92%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-1,254,540K ÷ $658,342K
= -190.56%

SolarEdge Technologies Inc's return on equity (ROE) has shown fluctuations over the past few years. At the end of 2020 and 2021, the ROE was relatively stable around 12.9%, indicating that the company was generating a reasonable return for its shareholders.

However, there was a significant drop in ROE to 4.31% by the end of 2022, suggesting potential challenges in generating profits compared to the equity invested.

Subsequently, there was a notable recovery in ROE to 12.02% by the end of 2023, but this was followed by a drastic decline to -190.56% by the end of 2024. A negative ROE implies that the company was operating at a loss and was not effectively utilizing its shareholders' equity.

Overall, SolarEdge Technologies Inc's ROE performance has been quite volatile, indicating potential instability in its profitability and efficiency in utilizing shareholders' equity over the years. Further analysis into the company's financial and operational strategies may be necessary to understand the reasons behind these fluctuations.