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
- Net Income Trends
- The net income shows overall growth from 2015 through 2021, beginning at approximately $21.1 million in mid-2015 and reaching a peak of $169.2 million at the end of 2021. Notably, there was a significant increase between 2015 and 2016, followed by a steady upward trend in subsequent years until 2021. However, in 2022, net income declined sharply to around $93.8 million, which indicates a notable setback after several years of increase.
- Stockholders’ Equity Trends
- Total stockholders’ equity has exhibited strong and consistent growth throughout the period. Starting from approximately $167 million in mid-2015, equity more than doubled during most intervals, culminating in a substantial increase to around $2.18 billion by the end of 2022. This steady increase in equity suggests successful capital accumulation and retained earnings over the years.
- Return on Equity (ROE) Trends
- The ROE experienced considerable fluctuations despite the growth in net income and equity. Initially, ROE was 12.65% in 2015, then surged to a high of nearly 30% in 2016. Afterward, it gradually declined, maintaining levels between approximately 13% and 23% from 2017 through 2020. The ratio decreased further to about 12.9% in 2021 and significantly dropped to a low of 4.31% in 2022. This downward trend in ROE in recent years suggests declining profitability relative to equity.
- Overall Analysis
- The financial data reflect a pattern of robust growth in equity and net income for most of the observed period. However, the considerable decline in net income and ROE in 2022 signals a weakening in profitability and efficiency in generating returns from shareholders’ equity. The continuous increase in equity coupled with the recent fall in ROE may indicate that the company is accumulating capital but facing challenges in translating this growth into equivalent earnings.
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. | 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% | 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% | 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% | 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% | 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% | 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% | 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% | -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% | 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% | 22.70% |
| Dec 31, 2021 | 12.91% | 25.79% |
| Dec 31, 2020 | 12.92% | 24.53% |
| Dec 31, 2019 | 18.06% | 26.83% |
| Dec 31, 2018 | 22.91% | 33.43% |
| Dec 31, 2017 | 21.18% | 16.95% |
| Jun 30, 2016 | 29.91% | 13.42% |
| Jun 30, 2015 | 12.65% | 19.06% |
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% | 39.15% |
| Dec 31, 2021 | 12.91% | 42.48% |
| Dec 31, 2020 | 12.92% | 35.75% |
| Dec 31, 2019 | 18.06% | 36.67% |
| Dec 31, 2018 | 22.91% | 30.39% |
| Dec 31, 2017 | 21.18% | 23.40% |
| Jun 30, 2016 | 29.91% | 23.36% |
| Jun 30, 2015 | 12.65% | 26.17% |
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).