Enphase Energy Inc (ENPH)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 102,658 | 61,417 | 129,608 | 275,966 | 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 |
| Total assets | US$ in thousands | 3,249,680 | 3,264,190 | 3,166,580 | 3,232,980 | 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 |
| ROA | 3.16% | 1.88% | 4.09% | 8.54% | 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $102,658K ÷ $3,249,680K
= 3.16%
Enphase Energy Inc's Return on Assets (ROA) shows the company's ability to generate profit from its assets. Analyzing the trend from March 31, 2020, to December 31, 2024, we observe fluctuations in ROA over time.
The ROA was relatively high at the start, standing at 22.05% in March 2020. However, it started to decline gradually, reaching its lowest point of 1.88% in September 30, 2024, indicating a decrease in the company's efficiency in utilizing its assets to generate earnings.
There were periods of improvement in ROA, for example, a slight increase from March 2021 to September 2022 and a more significant rise from December 31, 2022, to March 31, 2023. Despite these improvements, the ROA did not reach the initial levels observed in early 2020.
Enphase Energy Inc's ROA fluctuated between 1.88% and 22.05% during the period analyzed, suggesting variations in the company's profitability relative to its total assets. It is essential for the company to assess the reasons behind these fluctuations and work on strategies to enhance its ROA for sustainable and profitable growth in the future.
Peer comparison
Dec 31, 2024