Return on Equity (ROE)
since 2012
Calculation
Enphase Energy Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 44.62% | = | 100 | × | 438,936) | ÷ | 983,624) |
| Dec 31, 2022 | 48.13% | = | 100 | × | 397,362) | ÷ | 825,573) |
| Dec 31, 2021 | 33.81% | = | 100 | × | 145,449) | ÷ | 430,168) |
| Dec 31, 2020 | 27.69% | = | 100 | × | 133,995) | ÷ | 483,993) |
| Dec 31, 2019 | 59.20% | = | 100 | × | 161,148) | ÷ | 272,212) |
| Dec 31, 2018 | -149.52% | = | 100 | × | (11,627) | ÷ | 7,776) |
| Dec 31, 2017 | — | = | 100 | × | (45,192) | ÷ | (9,126) |
| Dec 31, 2016 | -5,189.38% | = | 100 | × | (67,462) | ÷ | 1,300) |
| Dec 31, 2015 | -53.28% | = | 100 | × | (22,082) | ÷ | 41,449) |
| Dec 31, 2014 | -17.15% | = | 100 | × | (8,052) | ÷ | 46,952) |
| Dec 31, 2013 | -64.45% | = | 100 | × | (25,913) | ÷ | 40,206) |
| Dec 31, 2012 | -67.46% | = | 100 | × | (38,218) | ÷ | 56,655) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$ in thousands
- Net Income (Loss)
- The net income displayed a persistently negative trend during the early years, with significant losses reported from 2012 through 2017. The magnitude of losses peaked in 2016 at -67,462 thousand US dollars. Starting in 2018, there was a notable reversal as the company recorded a positive net income of 161,148 thousand US dollars. This positive trajectory continued through 2023, culminating in a substantial net income of 438,936 thousand US dollars, indicating a strong recovery and improved profitability over the latter half of the period.
- Stockholders' Equity (Deficit)
- The equity position experienced considerable volatility across the years. From 2012 to 2017, stockholders’ equity fluctuated, initially declining from 56,655 thousand US dollars to a deficit of -9,126 thousand US dollars by the end of 2017. However, starting in 2018, there was a marked and sustained increase in equity, rising sharply to 983,624 thousand US dollars by 2023. This shift from deficit to substantial positive equity reflects significant strengthening of the company’s financial foundation during this timeframe.
- Return on Equity (ROE)
- ROE exhibited extremely high volatility and negative values early on, indicative of substantial losses relative to shareholder equity, with the lowest point occurring in 2016 at -5189.38%. Data for 2017 was missing. In 2018, ROE turned positive for the first time in the series, reaching 59.2%, and remained positive thereafter, albeit at varying levels. Between 2019 and 2023, ROE ranged from approximately 27.69% to 48.13%, signaling improving efficiency in generating returns on equity and enhanced profitability aligning with the upward trend in net income and equity.
- Overall Analysis
- The financial data reveals that the company underwent a period of financial distress and losses up to 2017, followed by a significant turnaround period beginning in 2018. The shift to profitability and strengthening equity suggests effective management decisions and operational improvements. The recovery is further emphasized by the stable and positive ROE figures from 2018 onward, reflecting an improved capability to generate returns for shareholders. These trends indicate a positive transformation from financial instability to robust growth and profitability over the analyzed period.
Comparison to Competitors
Enphase Energy Inc., ROE, long-term trends, comparison to competitors
| Enphase Energy Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 44.62% | 1.53% | 9.32% | 41.94% | 58.70% | 1.60% | 116.01% | 54.94% | -13.22% | 19.76% | 33.51% | 38.53% |
| Dec 31, 2022 | 48.13% | 2.41% | 7.54% | 53.51% | 50.62% | 7.90% | 237.04% | 73.35% | 17.41% | 36.65% | 71.81% | 60.02% |
| Dec 31, 2021 | 33.81% | 42.18% | 3.66% | 48.08% | 26.99% | 20.83% | 61.53% | 64.85% | 13.34% | 25.64% | 90.88% | 58.27% |
| Dec 31, 2020 | 27.69% | 42.66% | 10.17% | 34.21% | 12.40% | 25.79% | 45.65% | 43.53% | 6.89% | 22.91% | 85.54% | 60.90% |
| Dec 31, 2019 | 59.20% | 12.06% | 11.64% | 32.94% | 10.92% | 27.16% | 44.21% | 46.89% | 17.59% | 44.33% | 89.35% | 56.33% |
| Dec 31, 2018 | -149.52% | 26.62% | 13.61% | 48.44% | 45.99% | 28.24% | 49.51% | 36.62% | 43.77% | 40.78% | -524.14% | 62.04% |
| Dec 31, 2017 | — | 7.04% | 7.16% | 36.73% | 8.34% | 13.91% | 69.82% | 24.90% | 27.33% | 28.91% | 8.02% | 35.62% |
| Dec 31, 2016 | -5,189.38% | -119.47% | 16.68% | 23.85% | -9.20% | 15.58% | 102.22% | 15.51% | -2.28% | 13.74% | 17.95% | 34.33% |
| Dec 31, 2015 | -53.28% | — | 13.74% | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 23.57% | 14.27% | 16.78% | 30.02% |
| Dec 31, 2014 | -17.15% | -215.51% | 13.23% | 13.62% | 8.11% | 20.95% | 15.88% | 12.57% | 28.27% | 9.87% | 20.34% | 27.15% |
| Dec 31, 2013 | -64.45% | -15.26% | 14.21% | 3.61% | 19.13% | 16.51% | 15.60% | 2.54% | 13.02% | 11.65% | 18.99% | 20.01% |
| Dec 31, 2012 | -67.46% | -219.89% | 15.63% | 1.51% | 23.27% | 21.49% | 22.80% | 3.29% | -13.40% | 14.02% | 18.22% | 16.05% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Enphase Energy Inc., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Enphase Energy Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2023 | 44.62% | 13.30% |
| Dec 31, 2022 | 48.13% | 22.70% |
| Dec 31, 2021 | 33.81% | 25.79% |
| Dec 31, 2020 | 27.69% | 24.53% |
| Dec 31, 2019 | 59.20% | 26.83% |
| Dec 31, 2018 | -149.52% | 33.43% |
| Dec 31, 2017 | — | 16.95% |
| Dec 31, 2016 | -5,189.38% | 13.42% |
| Dec 31, 2015 | -53.28% | 19.06% |
| Dec 31, 2014 | -17.15% | 19.77% |
| Dec 31, 2013 | -64.45% | 15.77% |
| Dec 31, 2012 | -67.46% | 14.95% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Industry (Information Technology)
Enphase Energy Inc., ROE, long-term trends, comparison to industry (information technology)
| Enphase Energy Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2023 | 44.62% | 32.00% |
| Dec 31, 2022 | 48.13% | 39.15% |
| Dec 31, 2021 | 33.81% | 42.48% |
| Dec 31, 2020 | 27.69% | 35.75% |
| Dec 31, 2019 | 59.20% | 36.67% |
| Dec 31, 2018 | -149.52% | 30.39% |
| Dec 31, 2017 | — | 23.40% |
| Dec 31, 2016 | -5,189.38% | 23.36% |
| Dec 31, 2015 | -53.28% | 26.17% |
| Dec 31, 2014 | -17.15% | 25.60% |
| Dec 31, 2013 | -64.45% | 24.89% |
| Dec 31, 2012 | -67.46% | 26.24% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).