Enphase Energy Inc (ENPH)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	223,749	445,959	440,896	333,626	182,165
Total current liabilities	US$ in thousands	660,091	532,449	638,219	439,796	534,043
Quick ratio		2.80	4.02	3.22	3.07	1.61

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($369,110K + $1,253,480K + $223,749K) ÷ $660,091K
= 2.80

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates that a company has sufficient liquid assets to cover its current liabilities.

Enphase Energy Inc's quick ratio has shown a positive trend over the years, increasing from 1.61 in December 31, 2020, to 3.22 in December 31, 2022, and further to 4.02 in December 31, 2023. This indicates a significant improvement in the company's short-term liquidity position, reflecting its ability to easily cover its current liabilities with its liquid assets.

However, there was a slight decrease in the quick ratio to 2.80 in December 31, 2024. While this ratio is still above 1, suggesting that Enphase Energy Inc has a comfortable liquidity position, it is important to monitor this ratio in future periods to ensure the company maintains a strong ability to meet its short-term obligations.