Enphase Energy Inc (ENPH)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	1,201,090	1,293,740	1,199,460	951,594	4,898
Total assets	US$ in thousands	3,249,680	3,383,010	3,084,280	2,079,260	1,200,100
Debt-to-assets ratio		0.37	0.38	0.39	0.46	0.00

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,201,090K ÷ $3,249,680K
= 0.37

The debt-to-assets ratio for Enphase Energy Inc has shown a steady increasing trend from 0.00 in 2020 to 0.46 in 2021, but has since exhibited a declining pattern to 0.37 as of December 31, 2024. This ratio measures the proportion of the company's total liabilities relative to its total assets, indicating the extent of financial leverage and risk. A lower ratio indicates a lower dependency on debt financing, while a higher ratio suggests higher financial risk. Enphase Energy Inc's decreasing trend in the debt-to-assets ratio from 2021 to 2024 suggests a reduction in the company's reliance on debt to finance its operations, which could indicate strengthened financial stability over the period analyzed.