Name: SolarEdge Technologies Inc. (NASDAQ:SEDG) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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SolarEdge Technologies Inc., consolidated statement of comprehensive income

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	93,779)	169,170)	140,322)	144,957)	128,046)
Net change related to available-for-sale securities	(20,740)	(4,949)	(24)	920)	(223)
Net change related to cash flow hedges	(2,635)	874)	—)	—)	—)
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature	(20,540)	(17,420)	—)	—)	—)
Foreign currency translation adjustments, net	(1,875)	(9,681)	5,690)	(2,205)	310)
Other comprehensive income (loss), net of tax	(45,790)	(31,176)	5,666)	(1,285)	87)
Comprehensive income	47,989)	137,994)	145,988)	143,672)	128,133)
Comprehensive (income) loss attributable to non-controlling interests	—)	—)	—)	981)	(150)
Comprehensive income attributable to SolarEdge Technologies, Inc.	47,989)	137,994)	145,988)	144,653)	127,983)

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).

Between 2018 and 2022, the financial performance exhibited a period of moderate growth followed by a significant contraction in both net and comprehensive income. While profitability peaked in 2021, the subsequent year saw a marked decline in operational results and an acceleration of losses within other comprehensive income.

Net Income Trends: Net income demonstrated a generally upward trajectory from 2018 through 2021, rising from US$ 128.05 million to a peak of US$ 169.17 million. However, a sharp reversal occurred in 2022, with net income falling to US$ 93.78 million, representing a decrease of approximately 44.5% from the previous year's high.
Other Comprehensive Income (OCI) Volatility: Other comprehensive income shifted from marginal fluctuations between 2018 and 2020 to substantial losses in the latter two years. OCI transitioned from a gain of US$ 5.67 million in 2020 to a loss of US$ 31.18 million in 2021, and further deteriorated to a loss of US$ 45.79 million in 2022.
Drivers of Comprehensive Loss: The decline in comprehensive income was driven primarily by three factors: a significant drop in the value of available-for-sale securities, which reached a loss of US$ 20.74 million in 2022; substantial foreign currency translation adjustments on intra-entity transactions, totaling US$ 20.54 million in 2022; and negative adjustments related to cash flow hedges starting in 2021.
Comprehensive Income Trajectory: Comprehensive income remained relatively stable and aligned with net income from 2018 to 2020, ranging between US$ 128.13 million and US$ 145.99 million. However, the divergence between net income and comprehensive income widened significantly in 2021 and 2022. By the end of 2022, comprehensive income dropped to US$ 47.99 million, a level substantially lower than the net income for the same period, reflecting the heavy impact of non-operational losses.

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