Enphase Energy Inc (ENPH)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	438,936	571,770	572,629	492,414	397,362	296,200	203,197	165,572	145,449	165,849	183,402	96,757	133,995	177,670	169,407	227,319	161,148	45,191	10,622	-3,734
Total assets	US$ in thousands	3,383,010	3,553,940	3,465,880	3,380,850	3,084,280	2,697,840	2,437,110	2,263,280	2,079,260	2,230,160	2,100,660	2,194,200	1,200,100	1,092,340	997,927	1,030,790	713,223	523,669	481,518	319,252
ROA		12.97%	16.09%	16.52%	14.56%	12.88%	10.98%	8.34%	7.32%	7.00%	7.44%	8.73%	4.41%	11.17%	16.27%	16.98%	22.05%	22.59%	8.63%	2.21%	-1.17%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $438,936K ÷ $3,383,010K
= 12.97%

To analyze Enphase Energy Inc's return on assets (ROA) over the past 8 quarters, we observe a generally positive trend in ROA performance. ROA measures the company's ability to generate profits from its assets, indicating efficiency in asset utilization.

Enphase Energy's ROA has been consistently improving from Q1 2022 to Q4 2023, starting at 7.32% and reaching 12.97% in the latest quarter. This upward trajectory signifies enhanced effectiveness in generating earnings relative to the total assets employed.

The company's ROA experienced a notable spike from Q1 2023 to Q2 2023, jumping from 14.56% to 16.52%. This surge suggests improved profitability and efficient asset management during that period. Although there was a slight decrease in Q3 2023 to 16.09%, the overall trend remains positive.

Comparing the most recent ROA of 12.97% to the earlier quarters, Enphase Energy has made significant strides in maximizing returns from its assets. This indicates a strengthening financial position and operational efficiency within the organization.

In conclusion, Enphase Energy Inc's improving ROA trend reflects positive management of assets and profitability growth over the analyzed quarters, highlighting the company's ability to generate earnings relative to its asset base. Further monitoring of ROA will be beneficial to assess the company's continued financial performance and operational efficiency in the future.