Enphase Energy Inc (ENPH)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	521,973	677,901	674,827	582,390	461,404	354,216	256,086	220,562	166,082	180,105	192,606	85,851	140,411	109,882	92,701	153,164	99,805	57,461	23,372	9,836
Interest expense (ttm)	US$ in thousands	8,839	8,850	8,909	8,858	9,438	19,848	30,221	40,559	45,152	38,364	31,729	25,175	21,001	17,403	13,696	9,095	9,691	10,483	10,987	12,059
Interest coverage		59.05	76.60	75.75	65.75	48.89	17.85	8.47	5.44	3.68	4.69	6.07	3.41	6.69	6.31	6.77	16.84	10.30	5.48	2.13	0.82

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $521,973K ÷ $8,839K
= 59.05

The interest coverage ratio for Enphase Energy Inc has shown a positive trend over the past two years. In Q1 2022, the ratio was 5.48, indicating that the company's operating income was able to cover its interest expenses 5.48 times. This ratio improved in Q2 2022 to 8.82 and further increased in Q3 2022 to 24.11, demonstrating a strong ability to meet its interest obligations from operating income. However, the interest coverage ratio for Q4 2022 and all quarters in 2023 is not available, making it difficult to assess the recent performance in this aspect. It would be crucial to monitor future financial reports to assess the company's ability to cover its interest expenses moving forward.