Enphase Energy Inc (ENPH)

Debt-to-equity ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Long-term debt	US$ in thousands	1,201,090	1,200,260	1,199,430	1,198,600	1,293,740	1,196,950	1,201,110	1,200,280	1,199,460	1,198,630	1,197,790	1,196,950	951,594	940,244	929,015	917,873	4,898	256,452	253,174	295,216
Total stockholders’ equity	US$ in thousands	833,016	931,373	884,523	922,723	983,624	1,014,700	972,587	970,093	825,573	610,053	450,999	330,982	430,168	647,815	584,399	732,841	483,993	416,206	370,176	316,207
Debt-to-equity ratio		1.44	1.29	1.36	1.30	1.32	1.18	1.23	1.24	1.45	1.96	2.66	3.62	2.21	1.45	1.59	1.25	0.01	0.62	0.68	0.93

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,201,090K ÷ $833,016K
= 1.44

Enphase Energy Inc's debt-to-equity ratio has shown fluctuations over the past few years. The ratio decreased from 0.93 as of March 31, 2020, to a low of 0.01 by December 31, 2020, indicating a significant reduction in debt relative to equity during the year. However, there was a notable increase in the ratio in subsequent periods, reaching a peak of 3.62 as of March 31, 2022.

Subsequently, the ratio fluctuated around the 1.00 to 1.50 range from March 2023 to June 2024. This range generally suggests that the company has a balanced mix of debt and equity in its capital structure during this period. It is important to note that an increasing debt-to-equity ratio can indicate higher financial risk for the company, as it may be relying more on debt funding, which could lead to potential solvency issues if not managed carefully.

Overall, Enphase Energy Inc's debt-to-equity ratio has shown variability over the years, with fluctuations that may indicate shifting strategies in terms of leveraging debt for financing. Investors and analysts may want to further investigate the reasons behind these fluctuations and assess the company's overall financial health and risk profile.