Enphase Energy Inc (ENPH)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	369,110	288,748	473,244	119,316	679,379
Short-term investments	US$ in thousands	1,253,480	1,406,290	1,139,600	897,335	0
Total current liabilities	US$ in thousands	660,091	532,449	638,219	439,796	534,043
Cash ratio		2.46	3.18	2.53	2.31	1.27

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($369,110K + $1,253,480K) ÷ $660,091K
= 2.46

The cash ratio of Enphase Energy Inc has shown a positive trend over the years, indicating a strengthening liquidity position. The ratio has improved from 1.27 in December 2020 to 2.46 in December 2024. This suggests that the company has been able to increase its ability to cover short-term obligations with its cash and cash equivalents. The cash ratio exceeding 1 indicates that Enphase Energy Inc has sufficient liquid assets to meet its current liabilities, reflecting a healthy financial position. This upward trend in the cash ratio demonstrates the company's ability to manage its short-term financial obligations efficiently and indicates a potential ability to weather economic uncertainties.