Enphase Energy Inc (ENPH)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	1,058,388	1,222,427	1,228,330	1,123,993	974,595	827,208	699,650	608,446	554,422	513,046	467,669	388,255	345,981	301,924	271,649	268,581	221,245	171,529	132,087	109,469
Revenue (ttm)	US$ in thousands	2,290,786	2,712,868	2,796,499	2,615,577	2,330,853	2,018,920	1,735,726	1,521,587	1,382,049	1,234,169	1,061,153	870,634	774,425	719,618	721,172	729,728	624,333	506,590	404,535	346,337
Gross profit margin		46.20%	45.06%	43.92%	42.97%	41.81%	40.97%	40.31%	39.99%	40.12%	41.57%	44.07%	44.59%	44.68%	41.96%	37.67%	36.81%	35.44%	33.86%	32.65%	31.61%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,058,388K ÷ $2,290,786K
= 46.20%

The gross profit margin of Enphase Energy Inc has shown a consistent upward trend over the past eight quarters, indicating improved efficiency in managing production costs and generating revenue. The company's gross profit margin has increased steadily from 39.99% in Q1 2022 to 46.20% in Q4 2023, reflecting enhanced profitability. This signifies that Enphase Energy has been able to maintain a healthy level of profit after accounting for the cost of goods sold, which is essential for sustaining its operations and potentially garnering investor confidence. Overall, the gradual improvement in the gross profit margin suggests that the company is effectively managing its production and sales processes to enhance its financial performance.