Enphase Energy Inc (ENPH)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	102,658	438,936	397,362	145,449	133,995
Total assets	US$ in thousands	3,249,680	3,383,010	3,084,280	2,079,260	1,200,100
ROA		3.16%	12.97%	12.88%	7.00%	11.17%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $102,658K ÷ $3,249,680K
= 3.16%

Based on the data provided, Enphase Energy Inc's return on assets (ROA) has shown varying performance over the past five years.

- In 2020, the ROA was strong at 11.17%, indicating that Enphase Energy was generating a healthy return on its assets invested.
- However, in 2021, the ROA declined to 7.00%, suggesting a dip in the company's efficiency in utilizing its assets to generate profits.
- The ROA saw a significant improvement in 2022, reaching 12.88%, reflecting a positive trend in asset productivity and profitability.
- This positive momentum continued into 2023, with an ROA of 12.97%, indicating that Enphase Energy was effectively leveraging its assets to generate returns.
- However, there was a notable decline in 2024, with the ROA dropping to 3.16%, which may raise concerns about the company's ability to generate profits relative to its asset base.

Overall, Enphase Energy's ROA has shown some fluctuations over the years, and stakeholders may need to monitor the company's asset management strategies to ensure sustainable profitability in the future.