Enphase Energy Inc (ENPH)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	624,333	506,590	404,535	346,337
Property, plant and equipment	US$ in thousands	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	28,936	23,532	21,532	20,178
Fixed asset turnover		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	21.58	21.53	18.79	17.16

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,290,786K ÷ $168,244K
= 13.62

Enphase Energy Inc's fixed asset turnover has shown a decreasing trend from Q1 2022 to Q4 2023. The company's fixed asset turnover was highest in Q1 2022 at 20.93 and has gradually decreased to 13.62 in Q4 2023. A fixed asset turnover ratio measures a company's ability to generate sales from its fixed assets efficiently.

The fluctuation in Enphase Energy Inc's fixed asset turnover ratio could indicate changes in the company's asset management efficiency or changes in its business operations. A decreasing fixed asset turnover ratio may suggest that the company is not effectively utilizing its fixed assets to generate sales or experiencing challenges in optimizing asset productivity.

It is important for Enphase Energy Inc to monitor its fixed asset turnover ratio and investigate the reasons behind the decline to ensure efficient utilization of its fixed assets and improve overall operational performance. Further analysis, along with other financial metrics, would be necessary to gain a comprehensive understanding of the company's financial health and operational efficiency.