Enphase Energy Inc (ENPH)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.80 | 3.52 | 3.63 | 3.60 | 4.02 | 3.03 | 3.12 | 3.15 | 3.22 | 3.24 | 3.25 | 3.13 | 3.07 | 4.24 | 4.47 | 5.01 | 1.61 | 3.06 | 3.12 | 2.76 |
| Cash ratio | 2.46 | 3.11 | 3.11 | 2.94 | 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 |
Enphase Energy Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.
1. Current Ratio: The current ratio shows a generally healthy trend over the periods analyzed, ranging from a low of 1.75 in December 2020 to a high of 5.20 in March 2021. The ratio stayed above 3 for most of the periods, indicating that the company had more than enough current assets to cover its current liabilities.
2. Quick Ratio: The quick ratio measures the company's ability to pay off its current liabilities without relying on inventory. The quick ratio also shows a positive trend, with values exceeding 1 for all periods analyzed. It ranged from a low of 1.61 in December 2020 to a high of 5.01 in March 2021, indicating a strong ability to meet short-term obligations.
3. Cash Ratio: The cash ratio reflects the company's ability to cover its current liabilities with cash and cash equivalents. Enphase Energy's cash ratio remained above 1 for all periods, reflecting a healthy cash position. The ratio ranged from 1.27 in December 2020 to 4.32 in March 2021, indicating a strong ability to meet short-term obligations using cash on hand.
Overall, based on the liquidity ratios analyzed, Enphase Energy Inc appears to have maintained a strong liquidity position throughout the periods, with ample current assets to cover short-term liabilities and a healthy cash position to meet immediate obligations.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 100.41 | 92.98 | 117.66 | 123.42 | 99.91 | 95.95 | 88.17 | 82.89 | 75.67 | 82.89 | 79.75 | 82.63 | 70.75 | 67.17 | 69.41 | 63.68 | 59.58 | 52.80 | 51.03 | 47.82 |
The cash conversion cycle of Enphase Energy Inc has shown some fluctuations over the provided periods. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle for Enphase Energy Inc ranged from a low of 47.82 days to a high of 123.42 days. The trend appears to have increased over time, indicating that it took the company longer to convert its investments into cash.
Overall, a rising trend in the cash conversion cycle suggests that Enphase Energy Inc may be facing challenges in managing its working capital efficiently. This could be due to various factors, such as slower inventory turnover or longer accounts receivable collection periods.
It is important for the company to closely monitor its cash conversion cycle and work on improving it to ensure efficient management of working capital and liquidity. By reducing the cash conversion cycle, Enphase Energy Inc can free up cash resources that can be reinvested back into the business or used to meet financial obligations.