Enphase Energy Inc (ENPH)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 438,936 | 397,362 | 145,449 | 133,995 | 161,148 |
| Total stockholders’ equity | US$ in thousands | 983,624 | 825,573 | 430,168 | 483,993 | 272,212 |
| ROE | 44.62% | 48.13% | 33.81% | 27.69% | 59.20% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $438,936K ÷ $983,624K
= 44.62%
Enphase Energy Inc's return on equity (ROE) has shown fluctuations over the past five years. The ROE decreased from 59.20% in 2019 to 27.69% in 2020, suggesting a decline in profitability in the subsequent year. However, the company's ROE rebounded in 2021 to 33.81% before experiencing a significant increase to 48.13% in 2022. In the latest year, 2023, Enphase Energy Inc's ROE stands at 44.62%.
Overall, Enphase Energy Inc has maintained a relatively strong ROE performance over the years, indicating efficient utilization of shareholders' equity to generate profits. The upward trend from 2020 to 2022 suggests an improvement in the company's profitability and operational efficiency. However, the slight decrease in ROE from 2022 to 2023 may be an area for further assessment to ensure sustained growth and value creation for shareholders.
Peer comparison
Dec 31, 2023