Enphase Energy Inc (ENPH)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	513,139	452,048	120,928	119,410	90,114
Revenue	US$ in thousands	2,290,790	2,330,850	1,382,050	774,425	624,333
Pretax margin		22.40%	19.39%	8.75%	15.42%	14.43%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $513,139K ÷ $2,290,790K
= 22.40%

The pretax margin of Enphase Energy Inc has exhibited fluctuations over the past five years. In 2023, the pretax margin increased to 22.40% from 19.39% in 2022, indicating an improvement in profitability before accounting for taxes. This may be a positive indication of effective cost management, revenue growth, or efficiency enhancements within the company. The pretax margin in 2021 was 8.75%, showing a significant drop from the previous year, followed by a rebound to 15.42% in 2022 and an even stronger performance in 2023. Comparing these figures to 2019 and 2020, Enphase Energy Inc has generally demonstrated a consistent or improving ability to generate profits before taxes relative to its total revenue. Further analysis of the underlying factors affecting these margins may provide insights into the company's financial performance and potential future trends.