Enphase Energy Inc (ENPH)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	3,383,010	3,553,940	3,465,880	3,380,850	3,084,280	2,697,840	2,437,110	2,263,280	2,079,260	2,230,160	2,100,660	2,194,200	1,200,100	1,092,340	997,927	1,030,790	713,223	523,669	481,518	319,252
Total stockholders’ equity	US$ in thousands	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	272,212	152,289	117,271	14,124
Financial leverage ratio		3.44	3.50	3.56	3.49	3.74	4.42	5.40	6.84	4.83	3.44	3.59	2.99	2.48	2.62	2.70	3.26	2.62	3.44	4.11	22.60

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,383,010K ÷ $983,624K
= 3.44

The financial leverage ratio of Enphase Energy Inc has shown a declining trend from Q4 2022 to Q1 2023, indicating an improvement in the company's leverage position during this period. The ratio decreased steadily from 3.74 in Q4 2022 to 3.49 in Q1 2023.

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. A lower ratio suggests that the company is less reliant on debt financing, which can be considered a positive sign from a risk perspective.

Enphase Energy Inc's decreasing leverage ratio may indicate that the company has been managing its debt levels effectively or increasing its equity base. However, it is essential to consider other financial metrics and factors to get a comprehensive view of the company's overall financial health and stability.