Enphase Energy Inc (ENPH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,383,010 | 3,084,280 | 2,079,260 | 1,200,100 | 713,223 |
| Total stockholders’ equity | US$ in thousands | 983,624 | 825,573 | 430,168 | 483,993 | 272,212 |
| Financial leverage ratio | 3.44 | 3.74 | 4.83 | 2.48 | 2.62 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,383,010K ÷ $983,624K
= 3.44
The financial leverage ratio for Enphase Energy Inc has exhibited fluctuating trends over the past five years. The ratio stood at 3.44 in 2023, slightly lower compared to the previous year's ratio of 3.74. This indicates a decrease in the company's financial leverage in 2023. However, when compared to 2021, where the ratio was 4.83, there has been a notable reduction in financial leverage.
The financial leverage ratio of 3.44 in 2023 suggests that the company is relying on a higher proportion of debt financing relative to equity. While the ratio has decreased from the prior year, it still indicates a moderate level of financial leverage. It is essential for stakeholders to monitor this ratio closely to assess Enphase Energy Inc's ability to meet its debt obligations, manage financial risk, and maintain a healthy capital structure.
Peer comparison
Dec 31, 2023