Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
SolarEdge Technologies Inc. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2015
- Return on Assets (ROA) since 2015
- Total Asset Turnover since 2015
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to SolarEdge Technologies Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
SolarEdge Technologies Inc., long-term (investment) activity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a significant decline from 7.85 in 2018 to 4.81 in 2020, indicating a reduced efficiency in generating sales from fixed assets during that period. Following this decline, the ratio stabilized around 4.79 in 2021 and showed some recovery to 5.72 in 2022, albeit still below the initial 2018 level.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- When considering operating leases and right-of-use assets, the pattern shows a similar downward trend from 7.85 in 2018 to 4.23 in 2020. The ratio slightly increased to 4.29 in 2021 and further to 5.13 in 2022, reflecting a partial recovery but remaining lower than the 2018 figure. The incorporation of operating lease assets results in lower turnover values compared to the base net fixed asset turnover ratio, particularly noticeable in 2019.
- Total Asset Turnover
- Total asset turnover exhibits a continuous decline from 0.97 in 2018 to 0.6 in 2020, indicating decreasing efficiency in utilizing total assets to generate revenue during this timeframe. A modest improvement is observed in 2021 and 2022, with values rising to 0.68 and 0.73, respectively, although the ratio has not reverted to earlier high levels.
- Equity Turnover
- Equity turnover shows a downward trend from 1.67 in 2018 to 1.34 in 2020, suggesting lower revenue generation per unit of equity during this period. This ratio demonstrates partial recovery in the following years, increasing to 1.5 in 2021 and then slightly declining to 1.43 in 2022. Despite the fluctuations, turnover remains below the 2019 peak of 1.76.
Net Fixed Asset Turnover
SolarEdge Technologies Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues show a consistent upward trend over the five-year period. Starting at approximately $937 million in 2018, revenues increased to nearly $3.11 billion by the end of 2022. The most significant growth occurred between 2021 and 2022, where revenues rose by over 58%, indicating accelerating sales or business expansion in the final year reviewed.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment demonstrated steady growth throughout the period. Beginning at $119 million in 2018, it rose progressively each year to reach approximately $544 million by 2022. This increase suggests ongoing investment in fixed assets, possibly reflecting capacity expansion, modernization, or enhanced production facilities supporting the rising revenue base.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a declining trend from 2018 through 2021, falling from 7.85 to 4.79. This downward trend indicates that while fixed assets were increasing substantially, the efficiency in generating revenue per unit of fixed assets decreased. However, in 2022, the ratio reversed upwards to 5.72, suggesting improved utilization or productivity of fixed assets relative to revenue growth during that year.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
SolarEdge Technologies Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use assets, net | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues show a consistent and significant growth trend over the five-year period. Starting at approximately $937 million in 2018, revenues increased sharply to about $1.43 billion in 2019, then showed a modest rise in 2020 to $1.46 billion. Notably, there was a substantial jump in 2021, reaching nearly $1.96 billion, followed by an even more pronounced increase in 2022, culminating at approximately $3.11 billion. This indicates a strong expansion in sales and market demand over the period.
- Property, plant and equipment, net (including operating lease, right-of-use asset)
- The net value of property, plant, and equipment also rose considerably during the analyzed period. Beginning at about $119 million in 2018, the figure nearly doubled to $213 million in 2019. This upward trajectory continued steadily with values of $345 million in 2020, $458 million in 2021, and $607 million in 2022. The steady increase reflects ongoing capital investment and asset growth, likely supporting expanding operational capacity.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio illustrates how efficiently fixed assets are generating revenues. This ratio declined from 7.85 in 2018 to 6.7 in 2019 and dropped more sharply to 4.23 in 2020. It stabilized somewhat in 2021 at 4.29 and showed improvement in 2022, increasing to 5.13. The initial decrease suggests that asset growth outpaced revenue growth in earlier years, but the partial recovery in the most recent year indicates improving asset utilization efficiency.
Total Asset Turnover
SolarEdge Technologies Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenue Analysis
- Revenues exhibited a consistent upward trend over the five-year period. Starting at approximately 937 million US dollars at the end of 2018, revenues increased significantly to over 3.11 billion US dollars by the end of 2022. This represents more than a threefold growth, highlighting strong top-line expansion and market demand for the company’s products or services.
- Total Assets Analysis
- Total assets also showed a marked increase throughout the period. From around 964 million US dollars in 2018, total assets grew to over 4.26 billion US dollars by the end of 2022. The acceleration in asset growth is especially notable between 2019 and 2020, where assets increased from 1.49 billion to 2.44 billion US dollars, indicating substantial investments or acquisitions during this time.
- Total Asset Turnover Analysis
- The total asset turnover ratio, which measures the efficiency of asset use in generating revenue, started at 0.97 in 2018 and experienced a decline to 0.6 in 2020. This drop suggests that while assets grew rapidly, revenue growth during this period was not proportional, possibly reflecting a lag in asset utilization efficiency or the impact of large non-operational asset investments. However, from 2020 onward, the ratio improved moderately to 0.68 in 2021 and further to 0.73 in 2022, indicating a recovery in asset efficiency and better alignment between asset growth and revenue generation.
- Summary
- Overall, the data reveals a company in a phase of rapid expansion, as evidenced by strong revenue growth and significant increases in total assets. Although asset growth initially outpaced revenue growth, leading to a decrease in asset turnover, the subsequent improvement in this ratio suggests efforts to enhance operational efficiency and better leverage assets. The trend points to sustained growth and improving asset utilization in recent years.
Equity Turnover
SolarEdge Technologies Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Total SolarEdge Technologies, Inc. stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Equity turnover = Revenues ÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenues exhibited a consistent upward trend throughout the period analyzed. Starting at approximately $937 million at the end of 2018, revenues increased sharply to about $1.43 billion by 2019, followed by a moderate increase to nearly $1.46 billion in 2020. Subsequently, there was a more pronounced growth to roughly $1.96 billion in 2021, culminating in a substantial rise to approximately $3.11 billion by the end of 2022. This demonstrates a strong overall revenue growth trajectory, particularly notable in the last two years of the period.
- Total Stockholders’ Equity
- The stockholders’ equity also showed a steady and significant increase over the years. From $562 million at the end of 2018, it rose to about $812 million in 2019, followed by a continuous ascent to $1.09 billion in 2020, $1.31 billion in 2021, and reaching an elevated level of approximately $2.18 billion by the end of 2022. The growth in equity reflects ongoing capital accumulation and potential retention of earnings, indicating strengthening financial stability and possibly successful business expansion strategies.
- Equity Turnover
- The equity turnover ratio, which measures how efficiently the company generates revenues from its equity base, showed some variability but remained within a close range. It started at 1.67 in 2018, increased slightly to 1.76 in 2019, then declined to 1.34 in 2020, suggesting a period of less efficient equity use relative to revenues. It partially recovered to 1.50 in 2021, before slightly decreasing again to 1.43 in 2022. Overall, while revenues and equity both grew significantly, the equity turnover ratio indicates that revenue growth was somewhat less proportional to equity growth, especially post-2019.