Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
SolarEdge Technologies Inc., profitability ratios (quarterly data)
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).
- Gross Profit Margin
- The gross profit margin initially remains above 30%, with a peak around 34.06% in the first quarters reported. Over the subsequent periods, there is a gradual decline with fluctuations, reaching a lower range close to 26.85% in late 2022. This indicates a decreasing efficiency in controlling costs relative to revenues over time.
- Operating Profit Margin
- The operating profit margin shows a similar downward trend as gross profit margin, starting near 14.88% and decreasing steadily across the periods, reaching a low of 5.34% by the end of 2022. The margin experiences moderate fluctuations but the overall movement suggests increasing operating expenses or declining operational profitability.
- Net Profit Margin
- The net profit margin starts at 13.75% and declines gradually to 3.02% towards the final quarter observed. Unlike gross margin, net margin shows a more pronounced descent, indicating that after considering non-operational costs, the company’s retained earnings relative to sales have decreased substantially. This reflects pressures on bottom-line profitability possibly due to higher interest, taxes, or other expenses.
- Return on Equity (ROE)
- Return on equity follows a declining trend from 22.91% to 4.31%, with some intermediate fluctuations. The observed contraction in ROE suggests diminishing efficiency in generating profit from shareholders' equity. The deterioration may be related to falling net income or capital growth outpacing profitability improvements.
- Return on Assets (ROA)
- Return on assets also displays a downward trend, moving from 13.36% to 2.2%. This indicates decreasing effectiveness in utilizing total assets to generate earnings. The reduction suggests that asset utilization or overall asset profitability has weakened through the period under review.
Return on Sales
Return on Investment
Gross Profit Margin
SolarEdge Technologies Inc., gross profit margin calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Gross profit | 261,047) | 222,001) | 182,642) | 178,958) | 160,491) | 172,561) | 156,192) | 140,074) | 110,325) | 108,063) | 102,963) | 140,008) | 143,249) | 139,309) | 110,670) | 86,110) | 79,711) | 77,982) | 81,946) | 79,597) | ||||||
| Revenues | 890,702) | 836,723) | 727,774) | 655,080) | 551,915) | 526,404) | 480,057) | 405,489) | 358,107) | 338,095) | 331,851) | 431,218) | 418,223) | 410,556) | 325,010) | 271,871) | 263,670) | 236,578) | 227,118) | 209,871) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Gross profit margin1 | 27.16% | 26.85% | 28.22% | 30.19% | 32.04% | 32.72% | 32.54% | 32.19% | 31.62% | 32.53% | 33.01% | 33.64% | 33.62% | 32.71% | 32.31% | 32.60% | 34.06% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 44.93% | 46.55% | 48.01% | 48.53% | 48.25% | 46.82% | 45.71% | 44.79% | 44.53% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 62.70% | 58.63% | 58.33% | 57.81% | 61.83% | 68.04% | 67.36% | 66.37% | 65.87% | 65.39% | 65.56% | 66.43% | 67.00% | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | 46.51% | 47.05% | 47.51% | 47.67% | 47.32% | 46.69% | 45.83% | 44.96% | 44.72% | 44.23% | 44.04% | 43.81% | 43.72% | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | 66.55% | 65.68% | 64.42% | 62.95% | 61.36% | 60.18% | 58.98% | 57.54% | 56.58% | 55.70% | 55.21% | 55.32% | 55.24% | — | — | — | — | — | — | — | ||||||
| Intel Corp. | 42.61% | 46.56% | 49.85% | 54.32% | 55.45% | 56.27% | 55.59% | 54.62% | 56.01% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 61.00% | 60.86% | 60.77% | 60.27% | 59.93% | 59.38% | 58.80% | 58.43% | 57.81% | 56.81% | 56.09% | 57.21% | 59.08% | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | 45.69% | 45.93% | 46.30% | 46.19% | 46.53% | 46.49% | 46.59% | 46.43% | 45.88% | 45.86% | 45.20% | 45.13% | 45.15% | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | 45.18% | 46.89% | 45.81% | 41.37% | 37.62% | 33.66% | 30.70% | 31.37% | 30.57% | 29.03% | 30.33% | 36.11% | 45.72% | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | 64.93% | 64.40% | 63.76% | 62.43% | 62.34% | 62.62% | 62.84% | 63.47% | 61.99% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 57.84% | 57.99% | 58.51% | 58.16% | 57.51% | 59.82% | 59.99% | 60.17% | 60.67% | 56.96% | 65.07% | 65.22% | 64.57% | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | 68.76% | 69.51% | 69.26% | 68.68% | 67.47% | 66.36% | 65.46% | 64.70% | 64.10% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q4 2022 Calculation
Gross profit margin = 100
× (Gross profitQ4 2022
+ Gross profitQ3 2022
+ Gross profitQ2 2022
+ Gross profitQ1 2022)
÷ (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
= 100 × (261,047 + 222,001 + 182,642 + 178,958)
÷ (890,702 + 836,723 + 727,774 + 655,080)
= 27.16%
2 Click competitor name to see calculations.
The financial data reveals several trends over the analyzed quarterly periods, focusing on gross profit, revenues, and gross profit margin.
- Revenues
- Revenues generally show a consistent upward trend from March 31, 2018, through December 31, 2022. Beginning at approximately 210 million US dollars in early 2018, revenues increased steadily, peaking at nearly 891 million US dollars by the end of 2022. This reflects significant growth over the five-year span, despite some fluctuations notably in mid-2020 where a decline appears before resuming an upward trajectory.
- Gross Profit
- Gross profit also exhibits an overall increasing trend, rising from around 79.6 million US dollars in March 2018 to over 261 million US dollars by the end of 2022. However, gross profit values present a more variable pattern compared to revenues, with occasional dips such as in mid-2020 and late 2021, suggesting some impact on profitability despite growing revenues.
- Gross Profit Margin
- The gross profit margin percentage data is available starting only from March 31, 2019. Initially around 34%, this margin shows a gradual decline over the quarters, falling to a low near 26.85% by September 2022. There is a minor rebound to approximately 27.16% at the end of 2022, but the overall trend indicates a compressing margin. This decline in gross profit margin suggests that while revenues and gross profit amounts are increasing, the rate of profit relative to sales is decreasing, possibly due to increased costs or pricing pressures over the period analyzed.
In summary, the company demonstrates robust revenue growth accompanied by increasing gross profit values, yet the steady reduction in gross profit margin highlights potential challenges in maintaining cost efficiency or pricing power. This could warrant attention to cost control measures or strategic pricing adjustments to sustain profitability in the long term.
Operating Profit Margin
SolarEdge Technologies Inc., operating profit margin calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Operating income | (5,163) | 84,407) | 36,012) | 50,864) | 41,038) | 66,414) | 55,559) | 44,128) | 14,427) | 30,394) | 29,965) | 67,775) | 50,528) | 66,017) | 45,353) | 28,048) | 23,954) | 34,037) | 40,665) | 40,764) | ||||||
| Revenues | 890,702) | 836,723) | 727,774) | 655,080) | 551,915) | 526,404) | 480,057) | 405,489) | 358,107) | 338,095) | 331,851) | 431,218) | 418,223) | 410,556) | 325,010) | 271,871) | 263,670) | 236,578) | 227,118) | 209,871) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | 5.34% | 7.66% | 7.90% | 9.66% | 10.55% | 10.20% | 9.14% | 8.30% | 9.77% | 11.76% | 13.46% | 14.49% | 13.32% | 12.85% | 11.98% | 12.68% | 14.88% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 5.36% | 11.48% | 16.83% | 20.86% | 22.20% | 20.27% | 18.83% | 16.23% | 14.02% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 27.29% | 20.49% | 20.42% | 18.87% | 23.12% | 31.59% | 30.06% | 28.83% | 26.74% | 24.91% | 25.30% | 26.56% | 28.55% | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | 30.20% | 31.03% | 31.80% | 31.37% | 29.87% | 28.47% | 26.49% | 25.30% | 25.37% | 24.26% | 23.58% | 23.20% | 22.93% | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | 42.84% | 40.47% | 37.37% | 34.35% | 31.03% | 28.16% | 24.83% | 20.81% | 16.80% | 15.27% | 14.85% | 15.90% | 15.24% | — | — | — | — | — | — | — | ||||||
| Intel Corp. | 3.70% | 12.16% | 18.88% | 25.87% | 24.62% | 25.93% | 26.00% | 26.17% | 30.41% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 39.67% | 39.30% | 38.90% | 37.26% | 35.97% | 34.43% | 28.42% | 27.28% | 25.87% | 23.51% | 26.24% | 27.73% | 30.41% | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | 31.24% | 31.18% | 31.60% | 31.06% | 30.64% | 29.55% | 28.68% | 28.02% | 26.62% | 26.37% | 25.20% | 25.40% | 25.53% | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | 31.54% | 34.38% | 31.86% | 27.17% | 22.68% | 17.60% | 15.21% | 15.19% | 14.01% | 12.33% | 13.36% | 20.04% | 31.51% | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | 37.31% | 35.34% | 33.36% | 28.62% | 27.18% | 27.17% | 27.13% | 29.41% | 26.07% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 35.88% | 35.82% | 32.65% | 30.88% | 29.16% | 31.74% | 30.35% | 29.04% | 26.58% | 17.52% | 32.49% | 32.59% | 31.59% | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | 50.63% | 51.84% | 51.52% | 50.55% | 48.84% | 47.02% | 45.19% | 42.73% | 40.76% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q4 2022 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022
+ Operating incomeQ1 2022)
÷ (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
= 100 × (-5,163 + 84,407 + 36,012 + 50,864)
÷ (890,702 + 836,723 + 727,774 + 655,080)
= 5.34%
2 Click competitor name to see calculations.
The data reveals distinct trends in the quarterly financial performance over the observed period.
- Operating Income
- Operating income demonstrates a fluctuating trend with notable volatility. Initially, from early 2018 to late 2019, operating income generally increased, reaching a peak in September 2019 at 66,017 thousand US dollars, followed by a sharp decline in December 2019 to 50,528 thousand US dollars. During 2020, the figures showed significant inconsistency, with values dropping to nearly 14,427 thousand US dollars in December 2020, after a previous peak in March 2020. In 2021, operating income rebounded, attaining highs around 66,414 thousand US dollars in September, but again displayed-seasonal or external factors-related volatility thereafter. The first quarter of 2022 displayed a strong operating income of 84,407 thousand US dollars, the highest in the dataset, followed by a drastic decline to negative 5,163 thousand US dollars by the end of 2022, indicating potential challenges or extraordinary expenses during that last quarter.
- Revenues
- Revenue figures show a sustained upward trajectory throughout the period, nearly quadrupling from approximately 210 million US dollars in early 2018 to nearly 891 million US dollars by the end of 2022. There are occasional slowdowns or plateaus in certain quarters such as mid-2020; however, the overall pattern is one of steady and substantial growth. The trend suggests expanding market reach or increased sales volume over time, largely unaffected by short-term fluctuations observed in operating income.
- Operating Profit Margin
- Available from March 2019 onwards, the operating profit margin fluctuates between roughly 5% and 15%. The margin tends to peak between 12% to 15% in many quarters through 2019 and early 2020, indicating relatively healthy profitability. However, from late 2020 onwards, the margin generally declines, falling below 10% in multiple quarters throughout 2021 and 2022, and reaching a minimum of around 5.34% towards the end of the dataset. This decreasing trend, despite increasing revenues, may suggest rising costs, pricing pressure, or changes in cost structure impacting profitability.
Net Profit Margin
SolarEdge Technologies Inc., net profit margin calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income attributable to SolarEdge Technologies, Inc. | 20,829) | 24,743) | 15,084) | 33,123) | 40,954) | 53,048) | 45,092) | 30,076) | 17,655) | 43,751) | 36,668) | 42,248) | 52,778) | 41,627) | 33,128) | 19,016) | 12,936) | 45,643) | 34,568) | 35,686) | ||||||
| Revenues | 890,702) | 836,723) | 727,774) | 655,080) | 551,915) | 526,404) | 480,057) | 405,489) | 358,107) | 338,095) | 331,851) | 431,218) | 418,223) | 410,556) | 325,010) | 271,871) | 263,670) | 236,578) | 227,118) | 209,871) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | 3.02% | 4.11% | 5.78% | 7.78% | 8.61% | 8.24% | 8.63% | 8.94% | 9.62% | 11.55% | 10.89% | 10.71% | 10.28% | 8.39% | 10.09% | 11.22% | 13.75% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 5.59% | 9.96% | 14.51% | 17.98% | 19.24% | 26.72% | 25.76% | 25.24% | 25.50% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 22.88% | 17.00% | 16.84% | 15.18% | 19.00% | 26.15% | 25.16% | 23.99% | 21.79% | 20.14% | 20.05% | 21.06% | 22.75% | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | 25.31% | 26.42% | 27.20% | 27.10% | 25.53% | 24.54% | 22.35% | 21.19% | 21.04% | 19.58% | 18.89% | 18.83% | 18.52% | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | 34.62% | 31.96% | 29.76% | 27.47% | 24.54% | 22.90% | 19.11% | 16.01% | 12.39% | 10.70% | 10.97% | 11.64% | 12.05% | — | — | — | — | — | — | — | ||||||
| Intel Corp. | 12.71% | 19.13% | 26.03% | 31.68% | 25.14% | 26.89% | 23.91% | 23.93% | 26.84% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 36.06% | 36.41% | 36.57% | 36.52% | 30.04% | 28.77% | 22.52% | 21.76% | 20.96% | 18.26% | 21.55% | 23.04% | 25.73% | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | 26.73% | 27.13% | 27.78% | 27.07% | 26.72% | 26.07% | 24.85% | 23.60% | 22.42% | 21.81% | 21.67% | 22.38% | 22.70% | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | 28.24% | 30.61% | 28.95% | 24.86% | 21.16% | 16.20% | 13.60% | 13.59% | 12.54% | 11.16% | 11.72% | 17.01% | 26.97% | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | 36.23% | 33.81% | 32.33% | 27.66% | 25.98% | 25.89% | 25.94% | 28.18% | 25.61% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 29.27% | 30.52% | 28.42% | 27.71% | 26.94% | 28.25% | 27.28% | 25.21% | 22.09% | 13.72% | 16.36% | 17.31% | 18.07% | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | 43.68% | 44.21% | 43.78% | 43.34% | 42.35% | 41.61% | 40.12% | 40.04% | 38.69% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q4 2022 Calculation
Net profit margin = 100
× (Net income attributable to SolarEdge Technologies, Inc.Q4 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q3 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q2 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q1 2022)
÷ (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
= 100 × (20,829 + 24,743 + 15,084 + 33,123)
÷ (890,702 + 836,723 + 727,774 + 655,080)
= 3.02%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a consistent upward trajectory over the entire period, increasing from approximately 210 million US dollars in the first quarter of 2018 to nearly 891 million US dollars by the final quarter of 2022. Notable acceleration in revenue growth appears starting in early 2019, with periodic quarter-over-quarter increases, reflecting strong business expansion or increased sales performance. Despite some fluctuations, the overall pattern suggests robust growth throughout the examined quarters.
- Net Income Attributable Trends
- Net income attributable to the entity demonstrated considerable volatility in the observed quarters. Initial levels around 35 million US dollars in early 2018 showed notable increases reaching a peak above 52 million US dollars at the end of 2019. However, from 2020 onward, net income values became more erratic, with some significant declines and partial recoveries. The fourth quarter of 2020 recorded a pronounced drop to approximately 17.6 million US dollars, followed by a recovery through 2021. In 2022, net income again declined, ending the year at approximately 20.8 million US dollars, indicative of increased volatility and potential margin pressures despite growing revenues.
- Net Profit Margin Analysis
- The available profit margin data commencing late 2018 shows a gradual downward trend over the examined period. Starting at roughly 13.75% in late 2018, the margin experienced a consistent decline, dropping to 3.02% by the last quarter of 2022. This suggests that while revenues increased substantially, profitability as a percentage of revenue diminished noticeably. This trend may reflect rising costs, competitive pricing pressure, or other operational factors reducing efficiency or margin retention.
- Overall Observations
- The period analyzed presents a scenario of strong revenue growth accompanied by significant fluctuations in net income and deteriorating profit margins. The divergence between growing total sales and declining net profitability ratios implies potential challenges in cost management or pricing strategies. The financial data suggests emphasis should be placed on identifying operational inefficiencies or external pressures affecting profitability despite growing top-line figures.
Return on Equity (ROE)
SolarEdge Technologies Inc., ROE calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income attributable to SolarEdge Technologies, Inc. | 20,829) | 24,743) | 15,084) | 33,123) | 40,954) | 53,048) | 45,092) | 30,076) | 17,655) | 43,751) | 36,668) | 42,248) | 52,778) | 41,627) | 33,128) | 19,016) | 12,936) | 45,643) | 34,568) | 35,686) | ||||||
| Total SolarEdge Technologies, Inc. stockholders’ equity | 2,176,366) | 2,052,127) | 2,027,532) | 2,010,525) | 1,310,039) | 1,242,083) | 1,177,793) | 1,099,924) | 1,085,757) | 1,032,037) | 924,801) | 866,418) | 811,670) | 732,012) | 674,071) | 626,319) | 562,408) | 538,963) | 484,891) | 440,211) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | 4.31% | 5.55% | 7.01% | 8.57% | 12.91% | 11.74% | 11.60% | 11.65% | 12.92% | 17.00% | 18.74% | 19.60% | 18.06% | 14.58% | 16.43% | 17.91% | 22.91% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 2.41% | 4.17% | 5.67% | 6.13% | 42.18% | 55.62% | 48.63% | 44.51% | 42.66% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 7.54% | 5.15% | 4.43% | 3.43% | 3.66% | 13.87% | 12.83% | 11.63% | 10.17% | 9.44% | 9.59% | 10.37% | 11.64% | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | 53.51% | 55.06% | 58.35% | 55.09% | 48.08% | 44.00% | 36.95% | 33.62% | 34.21% | 33.30% | 32.31% | 32.64% | 32.94% | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | 50.62% | 48.50% | 42.58% | 34.09% | 26.99% | 24.94% | 20.40% | 16.49% | 12.40% | 10.54% | 10.48% | 10.83% | 10.92% | — | — | — | — | — | — | — | ||||||
| Intel Corp. | 7.90% | 13.32% | 18.88% | 23.87% | 20.83% | 23.42% | 21.78% | 23.30% | 25.79% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 237.04% | 77.19% | 73.76% | 70.61% | 61.53% | 59.60% | 46.59% | 46.99% | 45.65% | 44.35% | 42.61% | 42.32% | 44.21% | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | 73.35% | 75.35% | 70.88% | 73.28% | 64.85% | 64.42% | 53.86% | 48.15% | 43.53% | 46.21% | 47.26% | 43.02% | 46.89% | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | 17.41% | 20.12% | 18.86% | 16.04% | 13.34% | 9.77% | 7.86% | 7.51% | 6.89% | 5.98% | 6.20% | 9.62% | 17.59% | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | 36.65% | 34.49% | 33.48% | 28.37% | 25.64% | 24.95% | 24.36% | 25.34% | 22.91% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 71.81% | 80.15% | 83.73% | 88.12% | 90.88% | 112.56% | 108.05% | 91.17% | 85.54% | 83.00% | 132.94% | 94.02% | 89.35% | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | 60.02% | 61.52% | 60.86% | 58.62% | 58.27% | 60.23% | 60.30% | 60.73% | 60.90% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q4 2022 Calculation
ROE = 100
× (Net income attributable to SolarEdge Technologies, Inc.Q4 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q3 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q2 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q1 2022)
÷ Total SolarEdge Technologies, Inc. stockholders’ equity
= 100 × (20,829 + 24,743 + 15,084 + 33,123)
÷ 2,176,366 = 4.31%
2 Click competitor name to see calculations.
- Net Income Trend
- The net income attributable to the company exhibits notable fluctuations over the analyzed quarterly periods. Beginning with values ranging around 35,000 to 45,000 thousand US dollars in 2018, net income peaked at 52,778 thousand in December 2019. Following this peak, a significant decline is observed in December 2020, dropping to 17,655 thousand. Subsequently, the net income shows recovery and reaches a high of 53,048 thousand in September 2021 before descending again towards the end of 2022, recording levels around 20,000 thousand. Overall, net income demonstrates cyclical behavior with periods of growth followed by pronounced decreases.
- Total Stockholders’ Equity Trend
- Total stockholders’ equity shows a consistent upward trajectory throughout the timeline. Starting at 440,211 thousand US dollars at the end of Q1 2018, the equity base increased steadily each quarter without any apparent reversals. By the end of 2021, equity surpassed 1,310,039 thousand and continued rising to over 2,176,366 thousand by December 2022. This continued growth suggests sustained capital accumulation and retained earnings expansion over the period.
- Return on Equity (ROE) Trend
- The ROE values, available from Q1 2019 onwards, reflect a declining trend across the quarters examined. Starting at around 22.91% in Q1 2019, the metric decreases gradually with minor fluctuations, reaching approximately 11.74% by December 2021. The decline continues, with ROE dropping further to 4.31% by the last quarter of 2022. This downward trend indicates that despite growth in total equity, the proportionate return generated on shareholders’ equity is contracting.
- Relationship Between Key Metrics
- The data reveals an inverse pattern between total stockholders’ equity and ROE. While equity consistently increased, ROE decreased, suggesting that the growth in equity has outpaced net income growth, leading to diminishing returns relative to equity. The fluctuation in net income is more pronounced than changes in equity, which may indicate episodic earnings volatility impacting overall profitability metrics. The declining ROE trend, combined with intermittent net income fluctuations, could warrant further investigation into operational efficiency and profitability drivers.
- Summary
- In summary, the financial indicators depict a company with steady increases in equity capital but facing challenges in maintaining proportional profitability as indicated by the declining ROE. Net income variations highlight episodic performance swings, whereas sustained equity growth suggests ongoing investment or retained earnings accumulation. The decreasing ROE calls for focused analysis on profit generation effectiveness relative to equity deployment.
Return on Assets (ROA)
SolarEdge Technologies Inc., ROA calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income attributable to SolarEdge Technologies, Inc. | 20,829) | 24,743) | 15,084) | 33,123) | 40,954) | 53,048) | 45,092) | 30,076) | 17,655) | 43,751) | 36,668) | 42,248) | 52,778) | 41,627) | 33,128) | 19,016) | 12,936) | 45,643) | 34,568) | 35,686) | ||||||
| Total assets | 4,265,949) | 3,903,546) | 3,772,778) | 3,682,915) | 2,892,060) | 2,656,833) | 2,564,325) | 2,464,595) | 2,437,109) | 2,278,296) | 1,605,826) | 1,513,840) | 1,494,624) | 1,337,592) | 1,221,694) | 1,176,923) | 964,472) | 852,178) | 783,230) | 731,561) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | 2.20% | 2.92% | 3.77% | 4.68% | 5.85% | 5.49% | 5.33% | 5.20% | 5.76% | 7.70% | 10.79% | 11.22% | 9.81% | 7.98% | 9.06% | 9.53% | 13.36% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 1.95% | 3.35% | 4.64% | 5.07% | 25.46% | 35.59% | 32.14% | 28.70% | 27.78% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | 5.46% | 3.75% | 3.23% | 2.50% | 2.66% | 7.86% | 7.23% | 6.56% | 5.69% | 5.15% | 5.21% | 5.67% | 6.37% | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | 24.41% | 25.40% | 26.54% | 25.76% | 22.80% | 21.68% | 18.40% | 16.55% | 16.19% | 15.05% | 13.37% | 14.30% | 14.22% | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | 15.69% | 14.20% | 12.45% | 10.69% | 8.91% | 8.00% | 6.47% | 5.14% | 3.90% | 3.13% | 3.08% | 3.26% | 4.04% | — | — | — | — | — | — | — | ||||||
| Intel Corp. | 4.40% | 7.61% | 11.21% | 13.96% | 11.80% | 12.56% | 12.00% | 12.35% | 13.65% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | 26.37% | 26.21% | 25.57% | 24.46% | 20.23% | 18.68% | 13.93% | 13.85% | 13.11% | 11.57% | 12.30% | 12.20% | 13.05% | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | 26.78% | 27.37% | 27.51% | 27.40% | 24.59% | 22.64% | 19.28% | 17.33% | 15.47% | 16.21% | 17.37% | 17.21% | 18.26% | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | 13.11% | 15.18% | 14.17% | 12.02% | 9.96% | 7.38% | 5.91% | 5.59% | 5.01% | 4.35% | 4.63% | 7.07% | 12.91% | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | 22.07% | 20.20% | 18.32% | 17.30% | 15.05% | 14.23% | 13.46% | 14.27% | 16.15% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | 26.39% | 27.35% | 25.19% | 23.32% | 21.93% | 23.74% | 21.58% | 17.95% | 14.60% | 8.49% | 12.67% | 12.81% | 13.31% | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | 32.16% | 34.25% | 34.69% | 32.51% | 31.48% | 31.45% | 32.64% | 31.44% | 28.91% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q4 2022 Calculation
ROA = 100
× (Net income attributable to SolarEdge Technologies, Inc.Q4 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q3 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q2 2022
+ Net income attributable to SolarEdge Technologies, Inc.Q1 2022)
÷ Total assets
= 100 × (20,829 + 24,743 + 15,084 + 33,123)
÷ 4,265,949 = 2.20%
2 Click competitor name to see calculations.
The net income attributable to the company exhibits a fluctuating but generally upward trend from early 2018 through late 2021, peaking notably in the last quarter of 2021. The income starts at a lower level in the first quarter of 2018, rises through 2018 and 2019 with some quarterly variability, and reaches a maximum near the end of 2021. However, from the first quarter of 2022 onwards, net income shows a downward trajectory, with significant decreases across the quarters in 2022.
Total assets consistently increase throughout the observed periods, reflecting steady growth and expansion. Beginning from approximately 731 million in early 2018, assets rise each quarter without interruption, exceeding 4.2 billion by the last quarter of 2022. This indicates ongoing asset accumulation and possibly investments in business capacity or infrastructure.
Return on Assets (ROA) data is available starting in late 2018 and shows a declining trend overall. Initially, ROA is relatively high, peaking above 13% in late 2018, before gradually decreasing over the next several years. By the end of 2022, ROA falls to 2.2%, indicating reduced profitability relative to the asset base. The decline in ROA suggests that although assets have grown, their efficiency in generating profit has diminished over time.
- Net Income
- Demonstrates growth from 2018 to 2021 with sharp fluctuations, reaching the highest values in Q4 2021. The trend reverses in 2022, showing notable declines each quarter.
- Total Assets
- Exhibits a continuous upward trajectory from approximately $731 million to over $4.2 billion, indicating significant asset growth and expansion.
- Return on Assets (ROA)
- Shows a decline from a peak of 13.36% in late 2018 to just 2.2% by the end of 2022, suggesting decreasing profitability efficiency on an asset basis despite overall growth in assets.
In summary, the company experienced notable growth in earnings and assets up to 2021, but 2022 brought declines in net income and a continued drop in ROA. The sustained increase in total assets combined with decreasing ROA points to challenges in leveraging the growing asset base to maintain proportional profitability.