Enphase Energy Inc (ENPH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.38 | 0.34 | 0.35 | 0.36 | 0.39 | 0.44 | 0.49 | 0.53 | 0.46 | 0.42 | 0.44 | 0.42 | 0.00 | 0.23 | 0.25 | 0.29 | 0.14 | 0.19 | 0.21 | 0.20 |
| Debt-to-capital ratio | 0.57 | 0.54 | 0.55 | 0.55 | 0.59 | 0.66 | 0.73 | 0.78 | 0.69 | 0.59 | 0.61 | 0.56 | 0.01 | 0.38 | 0.41 | 0.48 | 0.27 | 0.40 | 0.46 | 0.82 |
| Debt-to-equity ratio | 1.32 | 1.18 | 1.23 | 1.24 | 1.45 | 1.96 | 2.66 | 3.62 | 2.21 | 1.45 | 1.59 | 1.25 | 0.01 | 0.62 | 0.68 | 0.93 | 0.38 | 0.66 | 0.85 | 4.63 |
| 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 |
Enphase Energy Inc's solvency ratios indicate the company's ability to meet its financial obligations and sustain its operations without being overwhelmed by debt.
The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.36 to 0.42. This ratio suggests that between 36% and 42% of Enphase Energy's assets are financed by debt, while the remainder is funded by equity. A decreasing trend in this ratio would generally be seen as positive for creditors and investors as it indicates a lower reliance on debt to finance operations.
The debt-to-capital ratio has shown a similar trend, hovering around 0.57 to 0.61 over the same period. This ratio reflects the proportion of debt versus total capital (debt and equity) used to finance the company's operations. A lower ratio is indicative of a healthier financial position, as it suggests that a smaller portion of the company's capital structure is reliant on debt.
The debt-to-equity ratio, which compares a company's debt to its equity, has declined from 3.88 in Q1 2022 to 1.27 in Q3 2023. The decreasing trend in this ratio indicates that Enphase Energy has been reducing its reliance on debt relative to equity, which is a positive sign for creditors and investors. However, Enphase Energy still maintains a debt level that is higher than its equity level.
The financial leverage ratio, which measures the relationship between a company's total assets and its equity, has shown a gradual decrease from 6.84 in Q1 2022 to 3.49 in Q1 2023. A lower financial leverage ratio suggests that the company is relying less on debt to finance its operations, which can be viewed positively by stakeholders.
Overall, the analysis of Enphase Energy Inc's solvency ratios indicates a consistent effort to reduce debt reliance and improve its financial health over the past eight quarters. However, it is important for the company to continue monitoring and managing its debt levels to maintain a sustainable capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the available data, Enphase Energy Inc's interest coverage ratio exhibited significant variability over the quarters provided. In Q1 2022, the interest coverage ratio stood at 5.48, indicating that the company generated sufficient operating income to cover its interest expenses 5.48 times over. This ratio improved in Q2 2022 to 8.82 and further increased in Q3 2022 to 24.11, reflecting a substantial enhancement in Enphase Energy Inc's ability to meet its interest obligations from its operating earnings during that period.
However, the values for Q4 2023, Q3 2023, Q2 2023, and Q1 2023 are not provided in the data, making it challenging to evaluate the recent trend in interest coverage. It is important to assess the current and future interest coverage ratios to understand the company's financial health and ability to service its debt obligations.