Enphase Energy Inc (ENPH)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 521,978 | 461,486 | 166,080 | 140,411 | 99,805 |
| Interest expense | US$ in thousands | 8,839 | 9,438 | 45,152 | 21,001 | 9,691 |
| Interest coverage | 59.05 | 48.90 | 3.68 | 6.69 | 10.30 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $521,978K ÷ $8,839K
= 59.05
The interest coverage ratio for Enphase Energy Inc has shown a declining trend over the past five years. In 2019, the interest coverage ratio was at its peak at 14.67, indicating the company's ability to cover its interest expenses nearly 15 times over. However, this ratio has been decreasing steadily since then, reaching 9.89 in 2020 and further decreasing to 4.85 in 2021. Notably, data for 2022 and 2023 is not available in this table.
A declining interest coverage ratio can signal potential financial distress or an increasing burden of interest payments on the company's earnings. It is important to monitor this trend closely in the coming years to assess Enphase Energy Inc's ability to meet its interest obligations and manage its debt effectively.
Peer comparison
Dec 31, 2023