Enphase Energy Inc (ENPH)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,330,380	2,290,790	2,330,850	1,382,050	774,425
Total current assets	US$ in thousands	2,327,080	2,443,520	2,264,270	1,462,460	933,064
Total current liabilities	US$ in thousands	660,091	532,449	638,219	439,796	534,043
Working capital turnover		0.80	1.20	1.43	1.35	1.94

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,330,380K ÷ ($2,327,080K – $660,091K)
= 0.80

The working capital turnover of Enphase Energy Inc has shown a fluctuating trend over the past five years. In December 2020, the working capital turnover stood at 1.94, indicating that the company generated revenue equivalent to nearly twice its working capital during that period.

However, there was a decline in the working capital turnover to 1.35 by December 2021, suggesting a decrease in the efficiency of utilizing its working capital to generate revenue. The trend continued in December 2022, where the turnover ratio slightly improved to 1.43 but remained below the 2020 level. By December 2023, the working capital turnover decreased further to 1.20, signaling a continued decrease in efficiency compared to previous years.

The most notable drop occurred by December 2024, with the working capital turnover falling to 0.80, representing a significant decline in the company's ability to generate revenue relative to its working capital levels. Overall, Enphase Energy Inc's working capital turnover has shown a declining trend, indicating potential inefficiencies in managing the working capital and generating revenue during the period under review.