Enphase Energy Inc (ENPH)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	521,978	461,486	166,080	140,411	99,805
Long-term debt	US$ in thousands	1,293,740	1,199,460	951,594	4,898	102,659
Total stockholders’ equity	US$ in thousands	983,624	825,573	430,168	483,993	272,212
Return on total capital		22.92%	22.79%	12.02%	28.72%	26.62%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $521,978K ÷ ($1,293,740K + $983,624K)
= 22.92%

Enphase Energy Inc's return on total capital has displayed fluctuations over the past five years. The company achieved a return on total capital of 20.26% at the end of December 2023, a slight decrease from 21.30% in the prior year. The return on total capital was notably lower in December 2021 at 14.70%. However, there was a significant improvement in December 2020 with a return of 22.88%, followed by an even stronger performance in December 2019 at 27.88%.

Overall, the trend in Enphase Energy Inc's return on total capital indicates variability in the company's efficiency in generating returns from its total capital base over the analyzed period. It would be beneficial to further investigate the factors contributing to these fluctuations to assess the company's financial performance and capital utilization strategies.