SolarEdge Technologies, Inc. is offering an inverter solution for a solar photovoltaic (PV) system. The NASDAQ: SEDG company’s products are including SolarEdge Power Optimizer, SolarEdge Inverter, StorEdge Solutions, and SolarEdge Monitoring Software. This company’s product roadmap is consisting of categories that are including power optimizers, inverters, monitoring services, energy storage, and smart energy management. The Company’s power optimizers are providing module-level maximum power point (MPP) tracking and real-time adjustments of current that is voltage to the optimal working point of each PV module. The company’s solution is consisting of a direct current (DC) power optimizer, an inverter, and a cloud-based monitoring platform. It is operated as a single integrated system.
Looking Into SolarEdge Technologies’s Return On Capital Employed
This is looking at Q2, SolarEdge Technologies (NASDAQ: SEDG) is earned $29.96 million, a 55.79% increase from the preceding quarter. SolarEdge Technologies’ sales are decreased to $331.85 million, a 23.04% change since Q1. In Q1, SolarEdge Technologies are earned $67.78 million, and total sales reached $431.22 million.
What Is Return On Capital Employed?
- It is having some changes in earnings and sales that are indicating shifts in SolarEdge Technologies’s Return on Capital Employed, a measure of yearly pre-tax profit relative to the capital employed in a business.
- Generally, a higher ROCE is suggesting successful growth in a company and it is a sign of higher earnings per share for shareholders in the future.
- In Q2, SolarEdge Technologies are posted a ROCE of 0.03%.
- It is important to keep in mind ROCE that is evaluated past performance and it is not used as a predictive tool.
- It is a good measure of a company’s recent performance, but several factors could be affecting earnings and sales shortly.
Important Metric
- ROCE is an important metric for the comparison of similar companies.
- A relatively high ROCE is showing SolarEdge Technologies is potentially operating at a higher level of efficiency than other companies in its industry.
- If the company is generating high profits with its current level of capital. Some of that money can be reinvested in more capital which will be led to higher returns and earnings per share growth.
- In SolarEdge Technologies’s case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.
Q2 Earnings Recap
SolarEdge Technologies is reported Q2 earnings per share at $0.97/share, which is beating analyst predictions of $0.69/share. You can check more stocks like NASDAQ: AAPL before stock trading.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.
