Operating Profit Margin
since 2015
Calculation
SolarEdge Technologies Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 5.34% | = | 100 | × | 166,120) | ÷ | 3,110,279) |
| Dec 31, 2021 | 10.55% | = | 100 | × | 207,139) | ÷ | 1,963,865) |
| Dec 31, 2020 | 9.77% | = | 100 | × | 142,561) | ÷ | 1,459,271) |
| Dec 31, 2019 | 13.32% | = | 100 | × | 189,946) | ÷ | 1,425,660) |
| Dec 31, 2018 | 14.88% | = | 100 | × | 139,420) | ÷ | 937,237) |
| Dec 31, 2017 | 15.00% | = | 100 | × | 91,086) | ÷ | 607,045) |
| Jun 30, 2016 | 14.65% | = | 100 | × | 71,759) | ÷ | 489,843) |
| Jun 30, 2015 | 8.69% | = | 100 | × | 28,257) | ÷ | 325,078) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30).
1 US$ in thousands
The financial performance between 2015 and 2022 is characterized by aggressive revenue expansion coupled with fluctuating operating efficiency. While total revenues grew consistently from US$ 325.1 million to over US$ 3.11 billion, the operating profit margin did not follow a linear growth path, indicating shifting cost structures and operational pressures over the eight-year period.
- Revenue and Income Growth
- Revenues exhibited a strong upward trajectory, increasing nearly tenfold from 2015 to 2022. Operating income followed a general upward trend for most of the period, rising from US$ 28.3 million in 2015 to a peak of US$ 207.1 million in 2021, before declining to US$ 166.1 million in 2022.
- Operating Profit Margin Trends
- Profitability margins experienced an initial phase of expansion, rising from 8.69% in 2015 to a peak of 15.00% in 2017. This was followed by a period of gradual compression through 2020, where the margin fell to 9.77%. Although a slight recovery to 10.55% occurred in 2021, the margin experienced a sharp decline in 2022.
- Analysis of 2022 Divergence
- A significant divergence between scale and profitability is evident in 2022. Despite achieving record revenues of US$ 3.11 billion—a substantial increase from US$ 1.96 billion in 2021—operating income fell by approximately 19.8%. This resulted in the operating profit margin dropping to 5.34%, the lowest level recorded in the analyzed timeframe, suggesting that operating expenses grew at a rate significantly exceeding revenue growth.
AI Ask an analyst for more
Comparison to Competitors
SolarEdge Technologies Inc., operating profit margin, long-term trends, comparison to competitors
| SolarEdge Technologies Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 5.34% | 5.36% | 27.29% | 30.20% | 42.84% | 3.70% | 31.24% | -7.79% | 31.54% | 37.31% | 35.88% | 50.63% |
| Dec 31, 2021 | 10.55% | 22.20% | 23.12% | 29.87% | 31.03% | 24.62% | 30.64% | -8.70% | 22.68% | 27.18% | 29.16% | 48.84% |
| Dec 31, 2020 | 9.77% | 14.02% | 26.74% | 25.37% | 16.80% | 30.41% | 26.62% | -9.02% | 14.01% | 26.07% | 26.58% | 40.76% |
| Dec 31, 2019 | 13.32% | 9.37% | 28.55% | 22.93% | 15.24% | 30.62% | 25.53% | 1.51% | 31.51% | 32.47% | 31.59% | 39.79% |
| Dec 31, 2018 | 14.88% | 6.97% | 30.35% | 27.80% | 24.63% | 32.91% | 29.01% | 17.84% | 49.34% | 33.05% | 3.26% | 42.53% |
| Dec 31, 2017 | 15.00% | 3.83% | 20.66% | 26.61% | 13.51% | 28.58% | 23.74% | 4.31% | 28.88% | 27.99% | 11.73% | 40.66% |
| Jun 30, 2016 | 14.65% | -8.71% | 30.05% | 19.88% | -3.09% | 21.68% | 18.25% | -29.96% | 1.35% | 14.91% | 27.57% | 35.89% |
| Jun 30, 2015 | 8.69% | -12.05% | 24.19% | 17.53% | 23.92% | 25.29% | 14.98% | 11.03% | 18.52% | 16.21% | 22.85% | 32.88% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30).