Enphase Energy Inc (ENPH)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	833,016	983,624	825,573	430,168	483,993
Debt-to-capital ratio		0.59	0.57	0.59	0.69	0.01

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,201,090K ÷ ($1,201,090K + $833,016K)
= 0.59

The debt-to-capital ratio for Enphase Energy Inc has shown a significant increase from 0.01 as of December 31, 2020, to 0.69 as of December 31, 2021. This spike indicates a notable shift in the company's capital structure, with a larger proportion of debt relative to its total capital.

Subsequently, the ratio declined to 0.59 as of both December 31, 2022 and December 31, 2024, suggesting some moderation in the company's debt levels. However, it is important to note that the debt-to-capital ratio remained above its initial level of 0.01, signifying an ongoing reliance on debt financing.

Overall, the trend in Enphase Energy Inc's debt-to-capital ratio indicates fluctuation in its leverage position over the years, possibly reflecting strategic decisions pertaining to financing requirements and capital allocation. This ratio is a key indicator of the company's financial risk and capital structure, and stakeholders should monitor it closely to assess the firm's ability to meet its debt obligations and sustain long-term financial health.