Enphase Energy Inc (ENPH)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,293,740	1,199,460	951,594	4,898	102,659
Total assets	US$ in thousands	3,383,010	3,084,280	2,079,260	1,200,100	713,223
Debt-to-assets ratio		0.38	0.39	0.46	0.00	0.14

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,293,740K ÷ $3,383,010K
= 0.38

The debt-to-assets ratio for Enphase Energy Inc has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing relative to the company's total assets.

The ratio was at its highest in 2021 at 0.50, suggesting that 50% of the company's assets were financed through debt. However, since then, there has been a notable improvement in the ratio, reaching 0.38 in 2023.

The decreasing trend in the debt-to-assets ratio can be seen as a positive sign, as it indicates a more conservative approach to debt management. Lower debt-to-assets ratios generally imply lower financial risk and greater financial stability for the company.

Overall, Enphase Energy Inc's decreasing debt-to-assets ratio trend suggests a more cautious and efficient capital structure management strategy in recent years.