Enphase Energy Inc (ENPH)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	629,138	1,058,390	974,595	554,422	345,981
Revenue	US$ in thousands	1,330,380	2,290,790	2,330,850	1,382,050	774,425
Gross profit margin		47.29%	46.20%	41.81%	40.12%	44.68%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $629,138K ÷ $1,330,380K
= 47.29%

Enphase Energy Inc's gross profit margin has fluctuated over the past five years. It decreased from 44.68% as of December 31, 2020, to 40.12% as of December 31, 2021, before showing a moderate increase to 41.81% by December 31, 2022. There was a significant improvement in the gross profit margin to 46.20% as of December 31, 2023, and further growth to 47.29% by December 31, 2024.

The increasing trend in the gross profit margin signifies that Enphase Energy Inc has been able to effectively manage its production costs relative to its revenue, resulting in a higher percentage of revenue retained as gross profit. This could be attributed to factors such as operational efficiencies, cost controls, pricing strategies, or a favorable product mix.

Overall, the improving gross profit margin suggests a positive performance in Enphase Energy Inc's ability to generate profits from its core business operations. However, close monitoring of this metric is still necessary to ensure sustained profitability and competitive positioning in the industry.