Enphase Energy Inc (ENPH)

Working capital 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
Total current assets	US$ in thousands	2,443,520	2,598,630	2,560,790	2,512,630	2,264,270	1,982,660	1,735,990	1,558,780	1,462,460	1,768,080	1,665,920	1,791,360	933,064	850,234	757,201	751,697	499,657	391,517	349,851	195,442
Total current liabilities	US$ in thousands	532,449	774,387	743,605	729,289	638,219	550,236	480,010	453,756	439,796	393,455	356,593	344,473	534,043	256,519	223,523	233,622	199,311	146,819	143,613	128,746
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,290,786K ÷ ($2,443,520K – $532,449K)
= 1.20

Enphase Energy Inc's working capital turnover has shown some fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.

In Q4 2023, the working capital turnover was 1.20, which indicates that Enphase Energy generated $1.20 in sales for every $1 of working capital invested. This ratio decreased from the previous quarter, indicating a slight decrease in efficiency in utilizing working capital to generate sales.

Looking back over the past eight quarters, the working capital turnover has generally been relatively stable, hovering around the range of 1.38 to 1.54. This suggests that Enphase Energy has been consistently utilizing its working capital effectively to generate sales revenue during this period.

Overall, Enphase Energy's working capital turnover ratio indicates a reasonable level of efficiency in managing its working capital resources to support its revenue generation activities. However, it is essential for the company to monitor and manage its working capital effectively to ensure continued operational efficiency and profitability.