SolarEdge Technologies Inc (SEDG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,708,292 | -1,656,738 | -588,194 | -277,654 | 40,205 | 272,623 | 373,756 | 259,410 | 166,120 | 212,321 | 194,328 | 213,875 | 207,139 | 195,697 | 159,677 | 134,083 | 157,730 | 178,662 | 214,285 | 229,673 |
| Long-term debt | US$ in thousands | 330,006 | 329,614 | 638,703 | 628,115 | 627,381 | 626,647 | 625,914 | 625,182 | 624,451 | 623,721 | 622,991 | 622,263 | 1,243,070 | 620,808 | 620,082 | 619,357 | 1,146,700 | 570,332 | — | — |
| 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 |
| Return on total capital | -172.84% | -128.83% | -21.43% | -9.68% | 1.32% | 8.75% | 11.88% | 8.72% | 5.93% | 7.93% | 7.33% | 8.12% | 8.11% | 10.51% | 8.88% | 7.80% | 7.07% | 11.15% | 23.17% | 26.51% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,708,292K ÷ ($330,006K + $658,342K)
= -172.84%
SolarEdge Technologies Inc return on total capital has been fluctuating over the period from March 31, 2020, to December 31, 2024. The return on total capital started at a relatively high level of 26.51% in March 2020 and gradually decreased over time. The ratio decreased significantly to 7.07% by December 31, 2020, showing a decline in the company's efficiency in generating returns relative to its total capital.
Although there was a slight increase in return on total capital in the following quarters, with values ranging from 7.80% to 10.51% up to September 30, 2021, the ratio remained relatively unstable. Subsequently, the return on total capital declined again and reached a low of 1.32% by December 31, 2023, indicating a downturn in the company's capital efficiency.
By March 31, 2024, the return on total capital turned negative at -9.68% and further decreased to -172.84% by December 31, 2024. These negative values suggest that SolarEdge Technologies Inc was unable to generate a return that covers the total capital invested during these periods.
Overall, the trend in return on total capital for SolarEdge Technologies Inc indicates fluctuations and a declining efficiency in generating returns relative to its total capital, with the ratio turning negative in the latter periods of the analysis.
Peer comparison
Dec 31, 2024