Stock Analysis on Net
Stock Analysis on Net

SolarEdge Technologies Inc. (NASDAQ:SEDG)

This company has been moved to the archive! The financial data has not been updated since February 22, 2023.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

SolarEdge Technologies Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2022 4.31% = 2.20% × 1.96
Sep 30, 2022 5.55% = 2.92% × 1.90
Jun 30, 2022 7.01% = 3.77% × 1.86
Mar 31, 2022 8.57% = 4.68% × 1.83
Dec 31, 2021 12.91% = 5.85% × 2.21
Sep 30, 2021 11.74% = 5.49% × 2.14
Jun 30, 2021 11.60% = 5.33% × 2.18
Mar 31, 2021 11.65% = 5.20% × 2.24
Dec 31, 2020 12.92% = 5.76% × 2.24
Sep 30, 2020 17.00% = 7.70% × 2.21
Jun 30, 2020 18.74% = 10.79% × 1.74
Mar 31, 2020 19.60% = 11.22% × 1.75
Dec 31, 2019 18.06% = 9.81% × 1.84
Sep 30, 2019 14.58% = 7.98% × 1.83
Jun 30, 2019 16.43% = 9.06% × 1.81
Mar 31, 2019 17.91% = 9.53% × 1.88
Dec 31, 2018 22.91% = 13.36% × 1.71
Sep 30, 2018 — = — × 1.58
Jun 30, 2018 — = — × 1.62
Mar 31, 2018 — = — × 1.66

Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2022 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

SolarEdge Technologies Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2022 4.31% = 3.02% × 0.73 × 1.96
Sep 30, 2022 5.55% = 4.11% × 0.71 × 1.90
Jun 30, 2022 7.01% = 5.78% × 0.65 × 1.86
Mar 31, 2022 8.57% = 7.78% × 0.60 × 1.83
Dec 31, 2021 12.91% = 8.61% × 0.68 × 2.21
Sep 30, 2021 11.74% = 8.24% × 0.67 × 2.14
Jun 30, 2021 11.60% = 8.63% × 0.62 × 2.18
Mar 31, 2021 11.65% = 8.94% × 0.58 × 2.24
Dec 31, 2020 12.92% = 9.62% × 0.60 × 2.24
Sep 30, 2020 17.00% = 11.55% × 0.67 × 2.21
Jun 30, 2020 18.74% = 10.89% × 0.99 × 1.74
Mar 31, 2020 19.60% = 10.71% × 1.05 × 1.75
Dec 31, 2019 18.06% = 10.28% × 0.95 × 1.84
Sep 30, 2019 14.58% = 8.39% × 0.95 × 1.83
Jun 30, 2019 16.43% = 10.09% × 0.90 × 1.81
Mar 31, 2019 17.91% = 11.22% × 0.85 × 1.88
Dec 31, 2018 22.91% = 13.75% × 0.97 × 1.71
Sep 30, 2018 — = — × — × 1.58
Jun 30, 2018 — = — × — × 1.62
Mar 31, 2018 — = — × — × 1.66

Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2022 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

SolarEdge Technologies Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2022 2.20% = 3.02% × 0.73
Sep 30, 2022 2.92% = 4.11% × 0.71
Jun 30, 2022 3.77% = 5.78% × 0.65
Mar 31, 2022 4.68% = 7.78% × 0.60
Dec 31, 2021 5.85% = 8.61% × 0.68
Sep 30, 2021 5.49% = 8.24% × 0.67
Jun 30, 2021 5.33% = 8.63% × 0.62
Mar 31, 2021 5.20% = 8.94% × 0.58
Dec 31, 2020 5.76% = 9.62% × 0.60
Sep 30, 2020 7.70% = 11.55% × 0.67
Jun 30, 2020 10.79% = 10.89% × 0.99
Mar 31, 2020 11.22% = 10.71% × 1.05
Dec 31, 2019 9.81% = 10.28% × 0.95
Sep 30, 2019 7.98% = 8.39% × 0.95
Jun 30, 2019 9.06% = 10.09% × 0.90
Mar 31, 2019 9.53% = 11.22% × 0.85
Dec 31, 2018 13.36% = 13.75% × 0.97
Sep 30, 2018 — = — × —
Jun 30, 2018 — = — × —
Mar 31, 2018 — = — × —

Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2022 is the decrease in profitability measured by net profit margin ratio.