Enphase Energy Inc (ENPH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.20% | 41.81% | 40.12% | 44.68% | 35.44% |
| Operating profit margin | 19.46% | 19.23% | 15.62% | 24.07% | 16.45% |
| Pretax margin | 22.40% | 19.39% | 8.75% | 15.42% | 14.43% |
| Net profit margin | 19.16% | 17.05% | 10.52% | 17.30% | 25.81% |
Enphase Energy Inc has demonstrated improving profitability over the years as indicated by its profitability ratios. The gross profit margin has generally been increasing, reaching 46.20% in 2023, reflecting the company's ability to control production costs and generate profits from its core operations.
The operating profit margin, a key indicator of operational efficiency, has also shown a positive trend, reaching 20.14% in 2023. This suggests that Enphase Energy has been effectively managing its operating expenses and is efficient in converting revenue into operating profits.
The pretax margin further indicates Enphase Energy's ability to generate profits before accounting for taxes. The pretax margin has shown significant improvement over the years, reaching 22.40% in 2023. This could indicate effective tax planning strategies or improvements in overall profitability.
Finally, the net profit margin, which measures the company's bottom line profitability after all expenses have been deducted, has seen fluctuations over the years but has generally been on an upward trend, reaching 19.16% in 2023. This suggests that Enphase Energy has been successful in controlling costs and increasing net income relative to revenues.
Overall, Enphase Energy Inc's profitability ratios show a positive trajectory, indicating strong operational performance and effective management of costs, which bodes well for its financial health and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.18% | 14.53% | 10.38% | 15.54% | 14.40% |
| Return on assets (ROA) | 12.97% | 12.88% | 7.00% | 11.17% | 22.59% |
| Return on total capital | 22.92% | 22.79% | 12.02% | 28.72% | 26.62% |
| Return on equity (ROE) | 44.62% | 48.13% | 33.81% | 27.69% | 59.20% |
Enphase Energy Inc's profitability ratios demonstrate a generally positive trend over the past five years. The Operating Return on Assets (Operating ROA) has ranged from 10.38% to 15.54%, with a current value of 13.64% as of December 31, 2023. This indicates the company's ability to generate operating profits from its assets, although it has slightly decreased compared to the previous year.
The Return on Assets (ROA) also shows a consistent performance, fluctuating between 7.00% and 22.59% over the same period. As of December 31, 2023, the ROA stands at 12.97%, suggesting that Enphase Energy is effectively utilizing its assets to generate profits, although it has experienced a slight increase compared to the previous year.
Similarly, the Return on Total Capital has ranged from 14.70% to 27.88% over the past five years, with a current value of 20.26% as of December 31, 2023. This ratio reflects the company's ability to generate returns from both equity and debt investments, indicating a strong performance in capital allocation.
The Return on Equity (ROE) has shown a positive trajectory, varying between 27.69% and 59.20% during the same period. As of December 31, 2023, the ROE stands at 44.62%, highlighting Enphase Energy's ability to generate profits from shareholders' equity, although it has slightly decreased compared to the previous year.
Overall, Enphase Energy Inc's profitability ratios exhibit a solid performance, indicating efficient utilization of assets and capital to generate profits, despite some fluctuations in the ratios over the years.