Enphase Energy Inc (ENPH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.29% | 46.20% | 41.81% | 40.12% | 44.68% |
| Operating profit margin | 5.81% | 19.46% | 19.23% | 15.62% | 24.07% |
| Pretax margin | 9.03% | 22.40% | 19.39% | 8.75% | 15.42% |
| Net profit margin | 7.72% | 19.16% | 17.05% | 10.52% | 17.30% |
Enphase Energy Inc's gross profit margin has shown some fluctuations over the past five years, starting at 44.68% in December 31, 2020, decreasing to 40.12% by December 31, 2021, before gradually improving to 47.29% by December 31, 2024. This indicates that the company has been able to improve its efficiency in generating revenue after accounting for direct costs of production.
The operating profit margin of Enphase Energy Inc experienced more significant variability during the same period, declining from 24.07% in December 31, 2020 to 5.81% by December 31, 2024. This trend suggests that the company's operating expenses have increased relative to its revenue, impacting its profitability at the operating level.
Similarly, the pretax margin of Enphase Energy Inc has been inconsistent, ranging from 8.75% in December 31, 2021 to 22.40% in December 31, 2023. This metric reflects the company's ability to control costs and generate profits before taxes.
Finally, the net profit margin of Enphase Energy Inc has also shown variability, decreasing from 17.30% in December 31, 2020 to 7.72% by December 31, 2024. This indicates that after accounting for all expenses, including taxes, the company's bottom line profitability has been impacted over the years.
Overall, Enphase Energy Inc's profitability ratios demonstrate a mix of performance trends, with fluctuations in the margins indicating changing operational and financial performance over the years. Investors and stakeholders may closely monitor these ratios to assess the company's financial health and its ability to generate sustainable profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.38% | 13.18% | 14.53% | 10.38% | 15.54% |
| Return on assets (ROA) | 3.16% | 12.97% | 12.88% | 7.00% | 11.17% |
| Return on total capital | 3.80% | 22.92% | 22.79% | 12.02% | 28.72% |
| Return on equity (ROE) | 12.32% | 44.62% | 48.13% | 33.81% | 27.69% |
Enphase Energy Inc's profitability ratios show a fluctuating trend over the years from 2020 to 2024.
- Operating Return on Assets (Operating ROA) decreased from 15.54% in 2020 to 10.38% in 2021, before rebounding to 14.53% in 2022 and then slightly decreasing to 13.18% in 2023. However, there was a significant drop to 2.38% in 2024, indicating a decline in the company's operational efficiency in generating profits from its assets.
- Return on Assets (ROA) followed a similar pattern, starting at 11.17% in 2020, dropping to 7.00% in 2021, then increasing to 12.88% in 2022 and remaining relatively stable at around 13% in 2023. However, there was a notable decline to 3.16% in 2024, reflecting a reduction in the company's overall profitability from its total assets.
- Return on Total Capital peaked at 28.72% in 2020 and experienced a downward trend in the following years, reaching 3.80% in 2024. This indicates that Enphase Energy Inc has been less effective in generating returns for both equity and debt holders over time.
- Return on Equity (ROE) exhibited a similar trend, starting at 27.69% in 2020, increasing to 33.81% in 2021 and peaking at 48.13% in 2022, before declining to 12.32% in 2024. This suggests a diminishing ability to generate profits for the company's shareholders.
Overall, the declining trend in profitability ratios for Enphase Energy Inc from 2020 to 2024 raises concerns about the company's efficiency in generating returns from its assets and capital, as well as its ability to create value for its shareholders.