Enphase Energy Inc (ENPH)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,290,790	2,330,850	1,382,050	774,425	624,333
Total current assets	US$ in thousands	2,443,520	2,264,270	1,462,460	933,064	499,657
Total current liabilities	US$ in thousands	532,449	638,219	439,796	534,043	199,311
Working capital turnover		1.20	1.43	1.35	1.94	2.08

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,290,790K ÷ ($2,443,520K – $532,449K)
= 1.20

Enphase Energy Inc's working capital turnover has exhibited fluctuations over the past five years. The working capital turnover ratio decreased from 2.08 in 2019 to 1.94 in 2020, indicating a decline in the efficiency of utilizing working capital to generate sales. However, from 2020 to 2021, there was a slight improvement in the ratio to 1.35, although it remained below the 2019 level.

In 2022, the working capital turnover ratio increased to 1.43, suggesting a more efficient utilization of working capital compared to the previous year. However, this improvement was followed by a decrease in 2023 to 1.20, indicating a potential decrease in efficiency in turning working capital into sales.

Overall, the trend in Enphase Energy Inc's working capital turnover ratio indicates variability in the company's ability to generate sales relative to its working capital levels. Further analysis of the company's operating efficiency and working capital management practices may be warranted to understand the factors driving these fluctuations.