Enphase Energy Inc (ENPH)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	983,624	825,573	430,168	483,993	272,212
Debt-to-capital ratio		0.57	0.59	0.69	0.01	0.27

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,293,740K ÷ ($1,293,740K + $983,624K)
= 0.57

The debt-to-capital ratio for Enphase Energy Inc has shown fluctuating trends over the five-year period from 2019 to 2023. In 2019, the ratio was relatively low at 0.28, indicating that a smaller portion of the company's capital structure was funded by debt. However, this ratio increased in subsequent years, reaching its peak at 0.71 in 2021, signifying a higher reliance on debt to finance operations and investments.

The ratio decreased in 2022 and 2023 to 0.61 and 0.57, respectively, suggesting a slight improvement in the company's debt management and capital structure. Despite the fluctuations, Enphase Energy Inc's debt-to-capital ratio has generally remained above 0.5 in recent years, indicating a significant portion of the company's capital is financed through debt.

Investors and creditors may view this trend with caution, as a higher debt-to-capital ratio can indicate increased financial risk and potential vulnerability to economic downturns or interest rate fluctuations. It is essential for Enphase Energy Inc to maintain a balance between debt and capital to ensure sustainable growth and financial stability in the long term.