Return on Assets (ROA)
since 2015
Calculation
SolarEdge Technologies Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 2.20% | = | 100 | × | 93,779) | ÷ | 4,265,949) |
| Dec 31, 2021 | 5.85% | = | 100 | × | 169,170) | ÷ | 2,892,060) |
| Dec 31, 2020 | 5.76% | = | 100 | × | 140,322) | ÷ | 2,437,109) |
| Dec 31, 2019 | 9.81% | = | 100 | × | 146,549) | ÷ | 1,494,624) |
| Dec 31, 2018 | 13.36% | = | 100 | × | 128,833) | ÷ | 964,472) |
| Dec 31, 2017 | 13.13% | = | 100 | × | 84,172) | ÷ | 641,305) |
| Jun 30, 2016 | 19.28% | = | 100 | × | 76,609) | ÷ | 397,438) |
| Jun 30, 2015 | 6.91% | = | 100 | × | 21,121) | ÷ | 305,658) |
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
- Net Income
- The net income exhibited substantial growth from 2015 to 2019, increasing from 21,121 thousand US dollars to a peak of 146,549 thousand US dollars. Following this peak, net income demonstrates some volatility, showing a slight decrease in 2020, rebounding to 169,170 thousand US dollars in 2021 before declining significantly to 93,779 thousand US dollars in 2022.
- Total Assets
- Total assets showed a consistent and strong upward trend throughout the entire period. Starting at 305,658 thousand US dollars in 2015, the assets increased dramatically to 4,265,949 thousand US dollars by the end of 2022, reflecting aggressive asset growth that may indicate expansion or increased investment.
- Return on Assets (ROA)
- The ROA percentage exhibited variability with a high of 19.28% in 2016 followed by a general declining trend. While it remained relatively stable in the mid-to-high single digits from 2017 through 2021, the ROA declined sharply to 2.2% in 2022. This decline suggests a decrease in the efficiency with which the company is using its assets to generate earnings, despite the significant growth in total assets.
- General Observations
- While the company’s net income grew significantly over the initial years, it faced volatility and a notable decline in the most recent period. The rapid growth in total assets combined with a decreasing ROA in recent years points to a potential inefficiency in asset utilization or other operational challenges. These trends warrant further investigation into capital deployment and the factors affecting profitability.
Comparison to Competitors
SolarEdge Technologies Inc., ROA, long-term trends, comparison to competitors
| SolarEdge Technologies Inc. | 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. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 2.20% | 1.95% | 5.46% | 24.41% | 15.69% | 4.40% | 26.37% | 26.78% | 13.11% | 22.07% | 26.39% | 32.16% |
| Dec 31, 2021 | 5.85% | 25.46% | 2.66% | 22.80% | 8.91% | 11.80% | 20.23% | 24.59% | 9.96% | 15.05% | 21.93% | 31.48% |
| Dec 31, 2020 | 5.76% | 27.78% | 5.69% | 16.19% | 3.90% | 13.65% | 13.11% | 15.47% | 5.01% | 16.15% | 14.60% | 28.91% |
| Dec 31, 2019 | 9.81% | 5.66% | 6.37% | 14.22% | 4.04% | 15.42% | 13.05% | 18.26% | 12.91% | 31.15% | 13.31% | 27.84% |
| Dec 31, 2018 | 13.36% | 7.40% | 7.31% | 18.64% | 24.46% | 16.45% | 14.28% | 19.08% | 32.59% | 27.11% | -14.88% | 32.56% |
| Dec 31, 2017 | 13.13% | 1.21% | 3.44% | 17.68% | 3.11% | 7.79% | 16.74% | 14.00% | 14.40% | 16.93% | 3.77% | 20.87% |
| Jun 30, 2016 | 19.28% | -14.97% | 10.81% | 11.80% | -3.48% | 9.10% | 14.20% | 7.45% | -1.00% | 8.33% | 10.90% | 21.88% |
| Jun 30, 2015 | 6.91% | -21.23% | 9.87% | 9.00% | 12.88% | 11.08% | 7.59% | 7.00% | 12.01% | 8.76% | 10.38% | 18.40% |
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).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
SolarEdge Technologies Inc., ROA, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| SolarEdge Technologies Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2022 | 2.20% | 12.68% |
| Dec 31, 2021 | 5.85% | 13.62% |
| Dec 31, 2020 | 5.76% | 11.80% |
| Dec 31, 2019 | 9.81% | 13.37% |
| Dec 31, 2018 | 13.36% | 17.34% |
| Dec 31, 2017 | 13.13% | 8.44% |
| Jun 30, 2016 | 19.28% | 7.07% |
| Jun 30, 2015 | 6.91% | 10.73% |
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).
Comparison to Industry (Information Technology)
SolarEdge Technologies Inc., ROA, long-term trends, comparison to industry (information technology)
| SolarEdge Technologies Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 2.20% | 14.55% |
| Dec 31, 2021 | 5.85% | 14.65% |
| Dec 31, 2020 | 5.76% | 11.44% |
| Dec 31, 2019 | 9.81% | 11.78% |
| Dec 31, 2018 | 13.36% | 10.94% |
| Dec 31, 2017 | 13.13% | 9.05% |
| Jun 30, 2016 | 19.28% | 9.79% |
| Jun 30, 2015 | 6.91% | 11.53% |
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).