Enphase Energy Inc (ENPH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	833,016	983,624	825,573	430,168	483,993
ROE		12.32%	44.62%	48.13%	33.81%	27.69%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $102,658K ÷ $833,016K
= 12.32%

Based on the ROE data provided for Enphase Energy Inc, the company's return on equity has shown a positive trend over the years, indicating strong performance in utilizing shareholders' equity to generate profits.

In 2020, the ROE stood at 27.69%, reflecting a healthy return relative to the equity invested in the company. This increased to 33.81% in 2021, highlighting an improvement in efficiency and profitability.

The ROE continued to climb significantly to 48.13% in 2022, showcasing a substantial increase in the company's ability to generate earnings from shareholders' equity.

Although there was a slight dip in ROE to 44.62% in 2023, the figure remained notably high, indicating Enphase Energy's consistent ability to generate substantial returns for its shareholders.

However, in 2024, the ROE dropped to 12.32%, signaling a significant decrease in profitability relative to the equity invested, which could be a cause for closer examination of the company's operational and financial performance in that year.

Overall, the fluctuation in ROE indicates Enphase Energy's varying efficiency in generating profits from shareholders' equity over the years, with a notable upward trend followed by a sudden decline in 2024.