Enphase Energy Inc (ENPH)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.25	4.24	4.31	4.72	5.77	8.56	9.44	9.91	9.06	8.14	7.95	9.47	11.12	11.03	15.72	13.83	10.26	11.13	14.41	13.32
Receivables turnover	5.95	5.38	5.12	5.02	5.14	4.84	5.37	5.07	5.29	5.49	5.56	4.25	4.14	4.52	3.77	3.69	4.25	5.88	8.06	7.64
Payables turnover	7.79	5.98	9.53	13.67	10.61	16.54	19.83	14.05	10.84	12.84	11.46	8.72	7.27	7.82	7.23	5.92	5.90	8.68	18.63	13.35
Working capital turnover	0.80	0.70	0.83	1.05	1.20	1.49	1.54	1.47	1.43	1.41	1.38	1.38	1.35	0.90	0.81	0.60	1.94	1.21	1.35	1.41

Enphase Energy Inc's inventory turnover ratio fluctuated between 4.31 and 15.72 over the past five years, indicating the number of times the company sold and replaced its inventory during a specific period. The decreasing trend in inventory turnover from 15.72 in June 2021 to 4.25 in December 2024 suggests that the company may be facing inventory management challenges or experiencing slower sales.

The receivables turnover ratio for Enphase Energy ranged between 3.69 and 8.06 during the same period, reflecting how efficiently the company collects payments from its customers. The gradual increase in receivables turnover from 3.69 in March 2021 to 5.95 in December 2024 indicates improved collection practices or tighter credit terms.

Enphase Energy's payables turnover ratio varied from 5.90 to 19.83, demonstrating how quickly the company pays its suppliers. The fluctuation in payables turnover from high levels in June 2023 to lower levels in September 2024 may indicate changes in payment terms negotiated with suppliers or cash flow constraints.

The working capital turnover ratio for Enphase Energy hovered between 0.60 and 1.94, showing how efficiently the company utilizes its working capital to generate sales revenue. The declining trend in working capital turnover from 1.54 in June 2023 to 0.80 in December 2024 may signal potential inefficiencies in managing working capital or a slowdown in revenue generation.

Overall, Enphase Energy's activity ratios highlight areas where the company may need to focus on optimizing inventory management, enhancing receivables collection, managing payables effectively, and improving the utilization of working capital to drive operational efficiency and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	85.89	86.18	84.66	77.38	63.26	42.64	38.66	36.84	40.29	44.86	45.89	38.55	32.81	33.11	23.22	26.39	35.58	32.80	25.32	27.40
Days of sales outstanding (DSO)	days	61.39	67.80	71.30	72.75	71.06	75.38	67.91	72.02	69.04	66.47	65.70	85.95	88.11	80.74	96.71	98.98	85.86	62.08	45.30	47.76
Number of days of payables	days	46.86	60.99	38.30	26.71	34.40	22.07	18.41	25.98	33.66	28.43	31.85	41.87	50.17	46.67	50.52	61.69	61.86	42.07	19.60	27.34

Enphase Energy Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Enphase Energy's DOH shows the number of days it takes for the company to sell its inventory. The trend indicates fluctuations in inventory management. From March 2020 to December 2024, the DOH increased consistently, reaching a peak of 85.89 days on December 31, 2024. This suggests a lengthening of the time it takes for Enphase Energy to convert inventory into sales, which could indicate potential issues with inventory control or market demand.

2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for Enphase Energy to collect revenue after making a sale. The trend shows fluctuations in the collection period. DSO increased initially, peaking at 98.98 days on March 31, 2021, before decreasing to 61.39 days on December 31, 2024. The decrease in DSO indicates improved efficiency in collecting revenue, which is a positive sign for cash flow management.

3. Number of Days of Payables: This ratio represents the average number of days it takes for Enphase Energy to pay its suppliers. The trend shows variations in the payment period. The number of days of payables decreased from 27.34 days on March 31, 2020, to 18.41 days on June 30, 2023, before gradually increasing to 46.86 days on December 31, 2024. A longer payment period may indicate improved cash flow management or potentially strained vendor relationships.

Overall, Enphase Energy's activity ratios highlight trends in inventory management, revenue collection, and payment practices, providing valuable insights into the company's operational efficiency and financial performance over time.

Long-term

	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
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
Total asset turnover	0.41	0.38	0.45	0.57	0.68	0.76	0.81	0.77	0.76	0.75	0.71	0.67	0.66	0.55	0.51	0.40	0.65	0.66	0.72	0.71

Enphase Energy Inc's Fixed Asset Turnover ratio has been decreasing steadily from 23.93 in March 2020 to 9.02 in December 2024. This indicates a decline in the company's efficiency in generating sales from its fixed assets over time.

On the other hand, the Total Asset Turnover ratio shows a fluctuating trend, starting at 0.71 in March 2020, dipping to 0.40 in March 2021, and then gradually increasing to 0.41 by December 2024. This ratio suggests that the company is generating revenue more effectively from its total assets compared to fixed assets.

Overall, the declining trend in Fixed Asset Turnover and the fluctuating trend in Total Asset Turnover may indicate potential issues with asset management efficiency and resource utilization within Enphase Energy Inc. Further analysis and comparison with industry benchmarks are recommended to assess the company's long-term activity performance accurately.