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SolarEdge Technologies (SolarEdge Technologies) Operating Income : $-243 Mil (TTM As of Mar. 2024)


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What is SolarEdge Technologies Operating Income?

SolarEdge Technologies's Operating Income for the three months ended in Mar. 2024 was $-171 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-243 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. SolarEdge Technologies's Operating Income for the three months ended in Mar. 2024 was $-171 Mil. SolarEdge Technologies's Revenue for the three months ended in Mar. 2024 was $204 Mil. Therefore, SolarEdge Technologies's Operating Margin % for the quarter that ended in Mar. 2024 was -83.81%.

Warning Sign:

SolarEdge Technologies Inc operating margin has been in a 5-year decline. The average rate of decline per year is -26%.

SolarEdge Technologies's 5-Year average Growth Rate for Operating Margin % was -26.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. SolarEdge Technologies's annualized ROC % for the quarter that ended in Mar. 2024 was -19.36%. SolarEdge Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -31.90%.


SolarEdge Technologies Operating Income Historical Data

The historical data trend for SolarEdge Technologies's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

SolarEdge Technologies Operating Income Chart

SolarEdge Technologies Annual Data
Trend Jun14 Jun15 Jun16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 212.34 142.56 208.49 282.66 71.52

SolarEdge Technologies Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 142.72 150.36 -16.73 -204.83 -171.31

SolarEdge Technologies Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-243 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


SolarEdge Technologies  (NAS:SEDG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

SolarEdge Technologies's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-685.256 * ( 1 - 13.14% )/( (3081.955 + 3067.584)/ 2 )
=-595.2133616/3074.7695
=-19.36 %

where

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4587.731 - 645.738 - ( 860.038 - max(0, 893.231 - 3304.306+860.038))
=3081.955

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4166.822 - 418.602 - ( 680.636 - max(0, 658.89 - 2989.067+680.636))
=3067.584

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

SolarEdge Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-685.256/( ( (678.746 + max(1406.07, 0)) + (664.697 + max(1547.408, 0)) )/ 2 )
=-685.256/( ( 2084.816 + 2212.105 )/ 2 )
=-685.256/2148.4605
=-31.90 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(622.425 + 1443.449 + 212.47) - (645.738 + 40.836 + 185.7)
=1406.07

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(404.39 + 1549.122 + 233.004) - (418.602 + 36.081 + 184.425)
=1547.408

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

SolarEdge Technologies's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=-171.314/204.399
=-83.81 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


SolarEdge Technologies Operating Income Related Terms

Thank you for viewing the detailed overview of SolarEdge Technologies's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


SolarEdge Technologies (SolarEdge Technologies) Business Description

Address
1 HaMada Street, Post Box 12001, Herziliya Pituach, ISR, 4673335
SolarEdge Technologies designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations. The company system consists of power optimizers, inverters, and cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. The company sells its products directly to solar installers, engineering, procurement, and construction firms and indirectly to solar installers through distributors and electrical equipment wholesalers. Additionally, the company has nonsolar products targeting energy storage and e-mobility.
Executives
Marcel Gani director 142 ALMENDRAL AVE, ATHERTON CA 94027
More Avery director 5930 ROYAL LANE SUITE E-120, DALLAS TX 75230
Ronen Faier officer: Chief Financial Officer MARVA 11, HERZLIA L3 46417
Dana Rebecca Gross director C/O PLAYTIKA LTD., HACHOSHLIM ST 8, HERZLIYA PITUARCH L3 4672408
Meir Adest officer: VP, Core Technologies 1 HAMADA STREET, HERZILIYA PITUACH L3 4673335
Uri Bechor officer: Chief Operating Officer 1 HAMADA STREET, HERZILIYA PITUACH L3 4673335
Zvi Lando officer: Vice President, Global Sales 1 HAMADA STREET, HERZILIYA PITUACH L3 4673335
Rachel Prishkolnik officer: VP, GC and Corporate Secretary 1 HAMADA STREET, HERZILIYA PITUACH L3 4673335
Dirk Hoke director 251 RHODE ISLAND STREET, SUITE 204, SAN FRANCISCO CA 94103
Doron Inbar director C/O CARMEL VENTURES, 12 ABBA EBAN AVENUE, HERZELIYA L3 46725
Yoav Galin officer: VP, Research and Development 1 HAMADA STREET, HERZILIYA PITUACH L3 4673335
Tal Payne director 1 HAMADA STREET, HERZILIYA PITUACH L3 4673335
Betsy S Atkins director
Jonathan Cheifetz director 9 EIN YAKOV ST., TEL AVIV L3 65155
Lior Handelsman officer: VP, Marktng and Prod Strategy 1 HAMADA STREET, HERZILIYA PITUACH L3 4673335

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