Analysis of Debt
Total Debt (Carrying Amount)
Enphase Energy Inc., balance sheet: debt
US$ in thousands
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).
Total debt experienced a substantial upward trajectory between 2019 and 2022, increasing from 105.5 million USD to 1.29 billion USD. This period marks a significant expansion of leverage, which subsequently stabilized in 2023, with the carrying amount ending the year at 1.29 billion USD.
- Non-Current Debt Trends
- Long-term obligations were the primary driver of the overall debt increase. After a sharp decline to 4.9 million USD in 2020, non-current debt surged to 951.6 million USD in 2021 and continued to climb, reaching 1.29 billion USD by December 31, 2023. This indicates a strategic shift toward long-term financing structures.
- Current Debt Volatility
- Short-term debt obligations exhibited significant fluctuation. A peak was observed in 2020 at 325.9 million USD, followed by a gradual reduction over the subsequent years. By the end of 2023, current debt was eliminated, leaving the company with no short-term debt obligations reported for that period.
- Debt Composition and Profile
- The composition of total debt shifted from a diversified maturity profile to one exclusively comprised of non-current liabilities by 2023. The migration from short-term to long-term debt suggests a reduction in immediate liquidity pressure and a preference for extended maturity horizons to manage the company's capital structure.
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Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Notes due 2028 | 511,800) |
| Notes due 2026 | 568,800) |
| Notes due 2025 | 147,700) |
| Notes due 2024 | —) |
| Notes due 2023 | —) |
| Long-term financing receivable recorded as debt | —) |
| Total debt (fair value) | 1,228,300) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.95 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.64%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.77% | 569,592) | 27,170) | |
| 4.44% | 628,183) | 27,891) | |
| 5.18% | 95,963) | 4,971) | |
| Total | 1,293,738) | 60,032) | |
| 4.64% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 60,032 ÷ 1,293,738 = 4.64%