Enphase Energy Inc (ENPH)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	288,748	290,075	278,676	286,045	473,244	337,583	495,473	251,850	119,316	885,546	1,312,260	1,489,010	679,379	661,792	607,254	549,144	251,409	203,046	205,959	78,087
Short-term investments	US$ in thousands	1,406,290	1,493,810	1,521,820	1,492,350	1,139,600	1,079,710	752,328	811,621	897,335	508,577	—	—	0	—	—	—	—	—	—	—
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
Cash ratio		3.18	2.30	2.42	2.44	2.53	2.58	2.60	2.34	2.31	3.54	3.68	4.32	1.27	2.58	2.72	2.35	1.26	1.38	1.43	0.61

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($288,748K + $1,406,290K) ÷ $532,449K
= 3.18

The cash ratio of Enphase Energy Inc has shown some fluctuations over the past eight quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, reached its highest point in Q4 2023 at 3.35, indicating a strong liquidity position. This means that Enphase Energy Inc had $3.35 in cash and cash equivalents for every $1 of short-term liabilities during that period.

Although the cash ratio decreased in Q3 2023 to 2.41, it remained above 2 in all quarters, suggesting that the company maintained a healthy liquidity level throughout the year. The cash ratio hovered around the 2.5 mark in Q2 and Q1 2023, indicating a stable cash position.

Comparing the Q4 2023 cash ratio to the same period in the previous year, there has been a slight increase from 2.62 to 3.35, highlighting an improvement in Enphase Energy Inc's cash position. The company also exhibited a relatively consistent cash ratio in the earlier quarters of 2022, ranging from 2.43 to 2.69.

Overall, the trend in Enphase Energy Inc's cash ratio indicates a strong ability to cover short-term obligations with its cash reserves, providing a favorable indication of the company's financial health and liquidity management.