SolarEdge Technologies Inc (SEDG)

Return on total capital

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-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	189,946
Long-term debt	US$ in thousands	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	—	—	173
Total stockholders’ equity	US$ in thousands	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	811,670
Return on total capital		-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%	23.40%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,656,738K ÷ ($329,614K + $956,366K)
= -128.83%

SolarEdge Technologies Inc's return on total capital has witnessed significant volatility over the past few quarters. The company's return on total capital was negative in the most recent quarter, standing at -128.83%, indicating that the company's capital was not generating sufficient returns.

This negative trend in return on total capital is a cause for concern as it signifies a significant underperformance relative to the capital employed. The company's return on total capital has been fluctuating, with a range of -128.83% to 26.51% over the analyzed period.

The notable decline in return on total capital from the positive figures in previous periods to the negative values in the recent quarters suggests a deterioration in the company's efficiency in utilizing its total capital to generate profits.

Overall, the analysis of SolarEdge Technologies Inc's return on total capital indicates inconsistency and a recent downward trend, highlighting potential inefficiencies in deploying capital resources effectively.