Enphase Energy Inc (ENPH)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	1,330,383	1,250,240	1,420,449	1,828,109	2,290,786	2,712,868	2,796,499	2,615,577	2,330,853	2,018,920	1,735,726	1,521,587	1,382,049	1,234,169	1,061,153	870,634	774,425	719,618	721,172	729,728
Property, plant and equipment	US$ in thousands	147,514	148,444	152,070	158,303	168,244	173,005	151,657	133,268	111,367	91,801	86,778	85,073	82,167	73,445	63,211	53,648	42,985	35,187	32,972	30,500
Fixed asset turnover		9.02	8.42	9.34	11.55	13.62	15.68	18.44	19.63	20.93	21.99	20.00	17.89	16.82	16.80	16.79	16.23	18.02	20.45	21.87	23.93

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,330,383K ÷ $147,514K
= 9.02

Enphase Energy Inc's fixed asset turnover has shown a declining trend over the past few years. From a high of 23.93 in March 2020, the ratio has steadily decreased to 9.02 by December 2024. This indicates that the company's ability to generate sales from its fixed assets has weakened over time. A lower fixed asset turnover ratio can suggest inefficiency in asset utilization, underutilization of fixed assets, or a decrease in sales relative to the value of fixed assets. Enphase Energy Inc may need to review its asset management strategies to improve the efficiency of its fixed asset utilization and enhance revenue generation from its existing assets.