SolarEdge Technologies Inc (SEDG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,411,910 | 2,176,370 | 1,310,040 | 1,085,760 | 811,670 |
| ROE | 1.42% | 4.31% | 12.91% | 12.92% | 18.06% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $34,329K ÷ $2,411,910K
= 1.42%
Solaredge Technologies Inc's return on equity (ROE) has shown a declining trend over the past five years. The ROE decreased from 18.06% in 2019 to 1.42% in 2023. This significant decrease indicates a weakening ability of the company to generate profits from the shareholders' equity.
The decreasing trend in ROE could be attributed to various factors such as an increase in expenses, a decrease in revenue growth, or inefficient management of assets and liabilities. It is essential for Solaredge Technologies Inc to investigate the reasons behind this declining trend to identify areas for improvement and implement strategies to enhance the profitability generated from shareholders' equity.
Peer comparison
Dec 31, 2023