SolarEdge Technologies Inc (SEDG)

Return on equity (ROE)

		Dec 31, 2024	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
Net income (ttm)	US$ in thousands	-1,254,538	-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
Total stockholders’ equity	US$ in thousands	658,342	956,366	2,106,190	2,240,550	2,411,910	2,490,410	2,520,190	2,350,790	2,176,370	2,052,130	2,027,530	2,010,520	1,310,040	1,242,080	1,177,790	1,099,920	1,085,760	1,032,040	924,801	866,418
ROE		-190.56%	-173.14%	-24.29%	-11.66%	1.42%	8.74%	12.04%	8.47%	4.31%	5.55%	7.01%	8.57%	12.91%	11.74%	11.60%	11.65%	12.92%	17.00%	18.74%	19.60%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-1,254,538K ÷ $658,342K
= -190.56%

SolarEdge Technologies Inc's return on equity (ROE) has shown a decreasing trend over the last few years. The ROE was relatively stable around the range of 17% to 19% from March 2020 to June 2021. However, there was a notable decline starting from September 2021, with ROE dropping to around 5% by September 2022.

The ROE further deteriorated to around 1.42% by December 2023, indicating a significant decrease in the company's profitability relative to its equity. The trend worsened significantly in the following quarters, with negative ROE figures recorded from March 2024 onwards.

The negative ROE values from March 2024 to December 2024 suggest that SolarEdge Technologies Inc's net income was insufficient to cover shareholder equity, indicating potential financial difficulties or inefficiencies within the company. It is important for stakeholders to closely monitor the company's financial performance and assess the underlying reasons driving the declining ROE levels.