Enphase Energy Inc (ENPH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.37 | 0.38 | 0.37 | 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 |
| Debt-to-capital ratio | 0.59 | 0.56 | 0.58 | 0.57 | 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 |
| Debt-to-equity ratio | 1.44 | 1.29 | 1.36 | 1.30 | 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 |
| 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 |
The solvency ratios of Enphase Energy Inc over the period under review show mixed performance.
1. Debt-to-assets ratio: The ratio reflects Enphase's ability to cover its liabilities with its assets. The trend indicates a concerning increase over the period, rising from 0.29 at the beginning to 0.37 by the end of 2024. This suggests a higher reliance on debt financing to support its assets.
2. Debt-to-capital ratio: This ratio measures the proportion of debt in the company's capital structure. Enphase's debt-to-capital ratio fluctuated during the period but generally increased, indicating a growing reliance on debt to finance its operations. It moved from 0.48 to 0.59 from March 2020 to December 2024.
3. Debt-to-equity ratio: The debt-to-equity ratio signifies the extent to which the company is using debt to finance its operations relative to shareholders' equity. Enphase's ratio spiked from 0.93 in March 2020 to 1.44 by December 2024. This indicates an increasing level of financial risk as debt financing compared to equity rose significantly over the period.
4. Financial leverage ratio: This ratio provides an insight into how much debt a company uses to finance its assets relative to its equity. Enphase's financial leverage ratio increased steadily from 3.26 in March 2020 to 3.90 by December 2024, signaling a growing reliance on debt to support its operations and assets.
Overall, while some fluctuations were observed, the general trend across all solvency ratios shows an increasing reliance on debt financing for Enphase Energy Inc, potentially raising concerns about its financial risk and ability to meet its debt obligations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 10.90 | 6.36 | 16.50 | 37.34 | 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 |
Enphase Energy Inc's interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio is generally viewed favorably as it signifies the company has more earnings available to cover interest payments.
The interest coverage ratio for Enphase Energy Inc fluctuated over the period analyzed. Beginning at a healthy 16.84 as of March 31, 2020, the ratio declined to 6.31 by September 30, 2020, before slightly recovering in the following quarters. However, there was a significant drop in the ratio to 3.41 as of March 31, 2021, indicating potentially tighter financial conditions.
Enphase Energy Inc's interest coverage ratio continued to fluctuate over the subsequent quarters, with some periods showing better coverage than others. Notably, there was a notable improvement in the ratio to 75.75 as of June 30, 2023, and 76.60 as of September 30, 2023, which may indicate the company's strengthened ability to handle interest expenses during those periods.
The ratio took a downturn in the latter part of 2024, falling to 6.36 as of September 30, 2024, before rising again to 10.90 by December 31, 2024. Overall, the trend in Enphase Energy Inc's interest coverage ratio suggests fluctuations in the company's ability to cover interest payments, with some periods demonstrating stronger coverage than others. It is important for investors and stakeholders to monitor these fluctuations to assess the company's financial health and ability to manage its debt obligations effectively.