Enphase Energy Inc (ENPH)

Financial leverage 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
Total assets	US$ in thousands	3,249,680	3,264,190	3,166,580	3,232,980	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
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
Financial leverage ratio		3.90	3.50	3.58	3.50	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,249,680K ÷ $833,016K
= 3.90

Enphase Energy Inc's financial leverage ratio has displayed fluctuations over the years, ranging from a low of 2.48 at the end of December 2020 to a high of 6.84 at the end of March 2022. The ratio decreased to 4.42 by the end of September 2022 and continued to show a downward trend until reaching 3.44 by the end of December 2023. From that point on, the ratio remained relatively stable around the 3.5 mark up to the end of December 2024.

Generally, a financial leverage ratio of above 3 indicates that the company has a higher level of debt relative to its equity, suggesting higher financial risk. Given the fluctuations observed in Enphase Energy Inc's financial leverage ratio, it is essential for stakeholders to closely monitor the company's debt levels and overall financial health to ensure sustainable growth and stability in the long term.