Enphase Energy Inc (ENPH)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	12.57	11.08	13.56	18.26
Receivables turnover	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	4.29	3.79	4.15	4.24
Payables turnover	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	7.01	5.52	4.13	4.51
Working capital turnover	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	2.08	2.07	1.96	5.19

In the analysis of Enphase Energy Inc's activity ratios, we observe the following trends:

1. Inventory Turnover: The company's inventory turnover has been fluctuating over the quarters, ranging from a low of 5.77 in Q4 2023 to a high of 9.91 in Q1 2023. Generally, the higher the inventory turnover, the more efficient the company is in managing its inventory levels. Enphase Energy's inventory turnover seems to have improved over the quarters, indicating better inventory management.

2. Receivables Turnover: Enphase Energy's receivables turnover has also fluctuated throughout the quarters, with the lowest turnover of 4.25 in Q1 2022 and the highest of 5.49 in Q3 2022. The receivables turnover ratio measures how efficiently a company collects on its credit sales, with higher turnover ratios indicating faster collection. Enphase Energy's receivables turnover has varied, suggesting some variability in the company's collection efficiency.

3. Payables Turnover: The payables turnover for Enphase Energy has shown volatility over the quarters, with a range from 8.72 in Q1 2022 to 19.83 in Q2 2023. A high payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can have advantages in terms of cash flow management. Enphase Energy's payables turnover has increased significantly in recent quarters, potentially reflecting a change in payment policies or supplier relationships.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue. Enphase Energy's working capital turnover has remained relatively stable around 1.4 to 1.5 throughout the quarters, indicating that the company is efficiently utilizing its working capital to generate sales.

Overall, the trend in Enphase Energy Inc's activity ratios suggests improvements in inventory management, stable working capital efficiency, and some variability in receivables and payables turnover. These ratios provide insights into the company's operational efficiency and effectiveness in managing its resources.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	29.03	32.93	26.92	19.99
Days of sales outstanding (DSO)	days	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	85.01	96.32	88.00	86.12
Number of days of payables	days	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	52.04	66.12	88.41	80.88

Enphase Energy Inc's activity ratios provide insights into the efficiency of managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for Enphase Energy to sell its inventory. The trend shows a slight increase in the days of inventory on hand over the quarters, with Q4 2023 experiencing a significant increase to 63.26 days. This may suggest potential issues in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO): DSO reflects how long it takes for the company to collect payment from its customers. The DSO fluctuated over the quarters, with Q1 2022 showing a high DSO of 85.95 days. The decreasing trend in recent quarters, with Q2 2023 at 67.91 days, indicates improved efficiency in collecting receivables.

3. Number of Days of Payables: This ratio represents the average number of days it takes for a company to pay its suppliers. Enphase Energy's days of payables have fluctuated over the quarters, with a notable increase in Q4 2023 to 34.40 days. This indicates a longer time frame for paying suppliers, which could suggest a change in the company's payment policies.

Overall, the analysis of Enphase Energy Inc's activity ratios suggests areas of improvement in managing inventory levels more efficiently and maintaining a balance in collecting receivables and paying suppliers.

Long-term

	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
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
Total asset turnover	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	0.88	0.97	0.84	1.08

Enphase Energy Inc's fixed asset turnover ratio has been decreasing over the past quarters, from 20.93 in Q4 2022 to 13.62 in Q4 2023. This indicates that the company generated lower sales relative to its fixed assets in the most recent quarter.

On the other hand, the total asset turnover ratio has shown fluctuations but has generally stayed within a range of 0.67 to 0.81 over the past eight quarters. This ratio measures the company's ability to generate sales from its total assets, and the variations suggest changes in the company's efficiency in utilizing its assets to generate revenue.

Overall, Enphase Energy Inc's activity ratios reflect the company's ability to generate sales in relation to its fixed and total assets, with the fixed asset turnover showing a more significant decline compared to the total asset turnover. Further analysis would be needed to determine the reasons behind these changes and their potential impact on the company's overall financial performance.