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
The financial trajectory between 2015 and 2022 is characterized by aggressive asset expansion that has significantly outpaced the growth of net earnings, resulting in a progressive decline in asset utilization efficiency.
- Net Income Performance
- Net income exhibited a consistent upward trend from 2015 through 2021, rising from 21.1 million USD to a peak of 169.2 million USD. However, a significant contraction occurred in 2022, where net income fell to 93.8 million USD, representing a substantial decrease in profitability compared to the prior year.
- Asset Growth Patterns
- Total assets underwent continuous and accelerating growth throughout the analyzed period, increasing from 305.7 million USD in 2015 to 4.27 billion USD by 2022. The scale of the balance sheet expanded more than thirteen-fold, with particularly rapid growth occurring between 2019 and 2022.
- Return on Assets (ROA) Trajectory
- The ROA reached a peak of 19.28% in 2016, indicating a period of high operational efficiency. Following this peak, a sustained downward trend is observed. Despite the increase in absolute net income through 2021, the ROA steadily declined, reaching 5.85% in 2021 and falling further to 2.20% in 2022. This trend demonstrates that the increase in the asset base diluted the returns, as profit growth failed to keep pace with the scale of investment in assets.
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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. | Marvell Technology Inc. | 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% | -1.90% | 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% | -2.58% | 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% | 14.23% | 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% | -1.79% | 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% | 11.06% | 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% | 0.45% | 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% | -14.91% | -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% | 7.40% | 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% | 12.17% |
| Dec 31, 2021 | 5.85% | 13.29% |
| Dec 31, 2020 | 5.76% | 11.86% |
| Dec 31, 2019 | 9.81% | 12.98% |
| Dec 31, 2018 | 13.36% | 17.25% |
| Dec 31, 2017 | 13.13% | 8.34% |
| Jun 30, 2016 | 19.28% | 6.69% |
| Jun 30, 2015 | 6.91% | 10.65% |
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% | 14.33% |
| Dec 31, 2021 | 5.85% | 14.52% |
| Dec 31, 2020 | 5.76% | 11.46% |
| Dec 31, 2019 | 9.81% | 11.67% |
| Dec 31, 2018 | 13.36% | 10.94% |
| Dec 31, 2017 | 13.13% | 9.00% |
| Jun 30, 2016 | 19.28% | 9.68% |
| Jun 30, 2015 | 6.91% | 11.51% |
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).