Enphase Energy Inc (ENPH)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Current ratio		3.53	4.59	3.55	3.33	1.75

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,327,080K ÷ $660,091K
= 3.53

The current ratio of Enphase Energy Inc has exhibited an upward trend over the past five years, starting at 1.75 on December 31, 2020 and reaching 3.53 on December 31, 2024. This indicates an improvement in the company's short-term liquidity position and its ability to meet its current obligations using its current assets. The current ratio exceeding 1 suggests that Enphase Energy Inc has more than enough current assets to cover its current liabilities, with a ratio above 2 considered healthy. The ratio peaking at 4.59 on December 31, 2023 indicates a significant surplus of current assets relative to current liabilities during that period. Overall, Enphase Energy Inc's current ratio shows a positive liquidity position, reinforcing its ability to manage short-term financial obligations effectively.