Enphase Energy Inc (ENPH)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,330,380	2,290,790	2,330,850	1,382,050	774,425
Property, plant and equipment	US$ in thousands	147,514	168,244	111,367	82,167	42,985
Fixed asset turnover		9.02	13.62	20.93	16.82	18.02

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,330,380K ÷ $147,514K
= 9.02

Enphase Energy Inc's fixed asset turnover ratio has exhibited fluctuations over the past five years, ranging from 9.02 to 20.93. The ratio was highest in 2022 at 20.93, indicating that the company generated $20.93 in revenue for every dollar invested in fixed assets during that year. However, in 2024, the ratio dropped to 9.02, signaling a decline in the efficiency of utilizing fixed assets to generate revenue.

The downward trend in fixed asset turnover from 2022 to 2024 may suggest potential concerns regarding the company's ability to efficiently utilize its fixed assets to generate revenue. A lower fixed asset turnover ratio could indicate underutilization of assets or inefficiencies in operations, which may warrant further investigation and analysis to identify the underlying causes.

It is important for Enphase Energy Inc to closely monitor its fixed asset turnover ratio and consider implementing strategies to enhance efficiency in asset utilization, such as improving operational processes, optimizing asset management, or exploring opportunities for asset monetization. This analysis highlights the significance of evaluating and managing fixed asset turnover to support sustainable business growth and profitability.