Enphase Energy Inc (ENPH)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 77,292 | 521,978 | 461,486 | 166,080 | 140,411 |
| Long-term debt | US$ in thousands | 1,201,090 | 1,293,740 | 1,199,460 | 951,594 | 4,898 |
| Total stockholders’ equity | US$ in thousands | 833,016 | 983,624 | 825,573 | 430,168 | 483,993 |
| Return on total capital | 3.80% | 22.92% | 22.79% | 12.02% | 28.72% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $77,292K ÷ ($1,201,090K + $833,016K)
= 3.80%
Enphase Energy Inc's return on total capital has fluctuated over the years based on the data provided. As of December 31, 2020, the company achieved a robust return of 28.72%, indicating efficient capital utilization. However, by December 31, 2021, the return decreased to 12.02%, reflecting a decline in profitability or possibly a change in the capital structure.
In the subsequent years, there was a notable improvement in the return on total capital. By December 31, 2022, the return rose to 22.79%, suggesting better capital efficiency and potential operational enhancements. The trend continued, with the return remaining relatively stable at 22.92% by December 31, 2023.
However, Enphase Energy Inc experienced a significant drop in its return on total capital by December 31, 2024, with a notable decrease to 3.80%. This sharp decline could indicate challenges in generating sufficient returns compared to the total capital deployed during that period.
Overall, Enphase Energy Inc's return on total capital has shown variability over the years, highlighting the importance of continuously monitoring and analyzing the company's capital allocation and operational performance to ensure sustainable and efficient use of resources.
Peer comparison
Dec 31, 2024