Return on Equity (ROE)
since 2015
Calculation
SolarEdge Technologies Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Total SolarEdge Technologies, Inc. stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 4.31% | = | 100 | × | 93,779) | ÷ | 2,176,366) |
| Dec 31, 2021 | 12.91% | = | 100 | × | 169,170) | ÷ | 1,310,039) |
| Dec 31, 2020 | 12.92% | = | 100 | × | 140,322) | ÷ | 1,085,757) |
| Dec 31, 2019 | 18.06% | = | 100 | × | 146,549) | ÷ | 811,670) |
| Dec 31, 2018 | 22.91% | = | 100 | × | 128,833) | ÷ | 562,408) |
| Dec 31, 2017 | 21.18% | = | 100 | × | 84,172) | ÷ | 397,467) |
| Jun 30, 2016 | 29.91% | = | 100 | × | 76,609) | ÷ | 256,108) |
| Jun 30, 2015 | 12.65% | = | 100 | × | 21,121) | ÷ | 166,944) |
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 from 2015 to 2022 is characterized by a period of substantial equity expansion and a fluctuating profitability trend that ultimately led to a decline in capital efficiency.
- Net Income Trajectory
- Net income experienced a sustained upward trend from 2015 through 2021, increasing from 21.1 million to a peak of 169.2 million. This growth phase was interrupted in 2022, when net income decreased significantly to 93.8 million, marking a sharp reversal from the previous six years of growth.
- Growth of Stockholders' Equity
- The equity base demonstrated consistent and aggressive growth throughout the analyzed period. Total stockholders' equity rose from 166.9 million in 2015 to 2.18 billion by 2022. This represents a continuous accumulation of capital, which substantially increased the denominator for efficiency calculations over time.
- Return on Equity (ROE) Analysis
- The ROE peaked early in the period at 29.91% in 2016. Following this peak, a long-term downward trend is observed, with the ratio declining to 12.91% by 2021. The most precipitous drop occurred in 2022, where ROE fell to 4.31%. This decline is attributable to the convergence of two factors: the contraction of net income in 2022 and the continued expansion of the equity base, which together diluted the return generated on shareholder investments.
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Comparison to Competitors
SolarEdge Technologies Inc., ROE, 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 | 4.31% | 2.41% | 7.54% | 53.51% | 50.62% | 7.90% | 237.04% | 73.35% | -2.68% | 17.41% | 36.65% | 71.81% | 60.02% |
| Dec 31, 2021 | 12.91% | 42.18% | 3.66% | 48.08% | 26.99% | 20.83% | 61.53% | 64.85% | -3.29% | 13.34% | 25.64% | 90.88% | 58.27% |
| Dec 31, 2020 | 12.92% | 42.66% | 10.17% | 34.21% | 12.40% | 25.79% | 45.65% | 43.53% | 18.26% | 6.89% | 22.91% | 85.54% | 60.90% |
| Dec 31, 2019 | 18.06% | 12.06% | 11.64% | 32.94% | 10.92% | 27.16% | 44.21% | 46.89% | -2.45% | 17.59% | 44.33% | 89.35% | 56.33% |
| Dec 31, 2018 | 22.91% | 26.62% | 13.61% | 48.44% | 45.99% | 28.24% | 49.51% | 36.62% | 12.58% | 43.77% | 40.78% | -524.14% | 62.04% |
| Dec 31, 2017 | 21.18% | 7.04% | 7.16% | 36.73% | 8.34% | 13.91% | 69.82% | 24.90% | 0.53% | 27.33% | 28.91% | 8.02% | 35.62% |
| Jun 30, 2016 | 29.91% | -119.47% | 16.68% | 23.85% | -9.20% | 15.58% | 102.22% | 15.51% | -19.60% | -2.28% | 13.74% | 17.95% | 34.33% |
| Jun 30, 2015 | 12.65% | — | 13.74% | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 8.46% | 23.57% | 14.27% | 16.78% | 30.02% |
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., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| SolarEdge Technologies Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2022 | 4.31% | 21.59% |
| Dec 31, 2021 | 12.91% | 24.91% |
| Dec 31, 2020 | 12.92% | 24.28% |
| Dec 31, 2019 | 18.06% | 25.76% |
| Dec 31, 2018 | 22.91% | 32.95% |
| Dec 31, 2017 | 21.18% | 16.60% |
| Jun 30, 2016 | 29.91% | 12.61% |
| Jun 30, 2015 | 12.65% | 18.69% |
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., ROE, long-term trends, comparison to industry (information technology)
| SolarEdge Technologies Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 4.31% | 38.03% |
| Dec 31, 2021 | 12.91% | 41.64% |
| Dec 31, 2020 | 12.92% | 35.38% |
| Dec 31, 2019 | 18.06% | 35.94% |
| Dec 31, 2018 | 22.91% | 30.23% |
| Dec 31, 2017 | 21.18% | 23.19% |
| Jun 30, 2016 | 29.91% | 23.00% |
| Jun 30, 2015 | 12.65% | 25.97% |
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).