Enphase Energy Inc (ENPH)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 97,090 56,776 146,529 331,543 521,973 677,901 674,827 582,390 461,404 354,216 256,086 220,562 166,082 180,105 192,606 85,851 140,411 109,882 92,701 153,164
Long-term debt US$ in thousands 1,201,090 1,200,260 1,199,430 1,198,600 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
Total stockholders’ equity US$ in thousands 833,016 931,373 884,523 922,723 983,624 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
Return on total capital 4.77% 2.66% 7.03% 15.63% 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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $97,090K ÷ ($1,201,090K + $833,016K)
= 4.77%

Enphase Energy Inc's return on total capital has fluctuated over the period from March 31, 2020, to December 31, 2024. The return on total capital peaked at 31.05% on June 30, 2023, indicating strong profitability relative to the capital employed. Subsequently, there was a decline in the return on total capital, reaching as low as 2.66% on September 30, 2024. This decrease suggests a potential decrease in the company's ability to generate returns from the total capital invested.

Overall, Enphase Energy Inc's return on total capital has shown variability, with some periods demonstrating higher profitability and others displaying lower returns. It is important for investors and stakeholders to monitor these fluctuations to assess the company's efficiency in utilizing its capital resources effectively.