Enphase Energy Inc (ENPH)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total current assets	US$ in thousands	2,327,080	2,360,880	2,241,650	2,302,570	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
Total current liabilities	US$ in thousands	660,091	567,478	529,632	554,095	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
Current ratio		3.53	4.16	4.23	4.16	4.59	3.36	3.44	3.45	3.55	3.60	3.62	3.44	3.33	4.49	4.67	5.20	1.75	3.31	3.39	3.22

December 31, 2024 calculation

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

Enphase Energy Inc's current ratio has exhibited some fluctuations over the past few years, ranging from a low of 1.75 as of December 31, 2020, to a high of 5.20 as of March 31, 2021. The current ratio measures the company's ability to meet its short-term obligations with its current assets, with a higher ratio indicating a stronger liquidity position.

The trend in Enphase Energy Inc's current ratio shows that the company experienced a significant improvement in liquidity from the end of 2020 to the first quarter of 2021, as evidenced by the sharp increase in the ratio from 1.75 to 5.20. This indicates that the company had a larger buffer of current assets to cover its short-term liabilities during that period.

Subsequently, the current ratio fluctuated in the range of 3.33 to 4.67 throughout 2021 and 2022, before stabilizing around 3.44 to 4.23 from March 31, 2023, to June 30, 2024. This range suggests that Enphase Energy Inc maintained a healthy level of liquidity to meet its short-term obligations during this period.

Overall, Enphase Energy Inc's current ratio has generally been above 1, indicating that the company has had more than enough current assets to cover its short-term liabilities. However, investors and analysts should continue to monitor the company's current ratio to ensure that it remains at an appropriate level to support its ongoing operations and growth.