Enphase Energy Inc (ENPH)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,290,790	2,330,850	1,382,050	774,425	624,333
Property, plant and equipment	US$ in thousands	168,244	111,367	82,167	42,985	28,936
Fixed asset turnover		13.62	20.93	16.82	18.02	21.58

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,290,790K ÷ $168,244K
= 13.62

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Enphase Energy Inc's fixed asset turnover has fluctuated over the past five years, with values of 13.62 in 2023, 20.93 in 2022, 16.82 in 2021, 18.02 in 2020, and 21.58 in 2019.

A higher fixed asset turnover ratio is generally favorable as it indicates that the company is generating more sales relative to its investment in fixed assets. Enphase Energy Inc's fixed asset turnover ratios have been relatively high, indicating efficient utilization of its fixed assets to generate revenue throughout the years.

The decrease in the fixed asset turnover ratio from 2019 to 2023 suggests that Enphase Energy Inc may be investing more in fixed assets relative to its revenue generation during this period. This could be due to expansion or capital investments in infrastructure to support future growth opportunities.

Overall, Enphase Energy Inc's fixed asset turnover ratios demonstrate a history of efficient utilization of fixed assets to generate revenue, with some fluctuations that may warrant further investigation to understand the underlying factors impacting the company's asset utilization efficiency.