Enphase Energy Inc (ENPH)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	521,973	677,901	674,827	582,390	461,404	354,216	256,086	220,562	166,082	180,105	192,606	85,851	140,411	109,882	92,701	153,164	99,805	57,461	23,372	9,836
Long-term debt	US$ in thousands	1,293,740	1,196,950	1,201,110	1,200,280	1,199,460	1,198,630	1,197,790	1,196,950	951,594	940,244	929,015	917,873	4,898	256,452	253,174	295,216	102,659	100,978	99,890	65,406
Total stockholders’ equity	US$ in thousands	983,624	1,014,700	972,587	970,093	825,573	610,053	450,999	330,982	430,168	647,815	584,399	732,841	483,993	416,206	370,176	316,207	272,212	152,289	117,271	14,124
Return on total capital		22.92%	30.65%	31.05%	26.83%	22.79%	19.58%	15.53%	14.44%	12.02%	11.34%	12.73%	5.20%	28.72%	16.34%	14.87%	25.05%	26.62%	22.69%	10.76%	12.37%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $521,973K ÷ ($1,293,740K + $983,624K)
= 22.92%

Enphase Energy Inc's return on total capital has shown a generally positive trend over the past eight quarters, with fluctuations observed quarter to quarter. The company's return on total capital increased from 13.39% in Q1 2022 to 27.95% in Q2 2023 before slightly decreasing to 20.26% in Q4 2023. These figures indicate that Enphase Energy Inc has been effectively utilizing its capital to generate returns for its investors.

Overall, Enphase Energy Inc's return on total capital has consistently remained above 10% over the analyzed period, indicating efficient capital allocation and operational effectiveness. However, the fluctuations in the return on total capital suggest that the company's profitability and efficiency may be influenced by various factors, such as market conditions, operational performance, and financial management strategies. Further analysis on the drivers behind these fluctuations would provide more insights into Enphase Energy Inc's financial performance and potential areas for improvement.