Enphase Energy Inc (ENPH)

Debt-to-equity 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-equity ratio		1.32	1.45	2.21	0.01	0.38

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,293,740K ÷ $983,624K
= 1.32

The debt-to-equity ratio of Enphase Energy Inc has exhibited fluctuations over the past five years. The ratio stood at 1.32 as of December 31, 2023, indicating that the company had $1.32 in debt for every $1 of equity. This represents a decrease from the previous year where the ratio was 1.56.

Comparing these figures to earlier years, there has been a notable downward trend in the debt-to-equity ratio. In 2021, the ratio was significantly higher at 2.41, suggesting a higher level of debt relative to equity. However, in 2020 and 2019, the company maintained lower ratios of 0.68 and 0.39, respectively, indicating a more conservative capital structure.

The decrease in the debt-to-equity ratio from 2022 to 2023 may suggest that Enphase Energy Inc has been reducing its reliance on debt financing in favor of equity financing or has been paying down existing debt. This trend could indicate a more favorable financial position in terms of solvency and financial risk.

It is important to note that the interpretation of the debt-to-equity ratio should be done in conjunction with other financial metrics and considerations to gain a comprehensive understanding of Enphase Energy Inc's financial health and capital structure.