Stock Analysis on Net
Stock Analysis on Net

Enphase Energy Inc. (NASDAQ:ENPH)

This company has been moved to the archive! The financial data has not been updated since February 9, 2024.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Enphase Energy Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 96,151 34,499 — — —
State 13,937 9,719 488 636 327
Foreign 11,303 10,605 6,232 1,896 1,589
Current 121,391 54,823 6,720 2,532 1,916
Federal (50,211) (6,245) (28,398) (13,445) (56,959)
State 1,287 3,803 (4,380) (3,672) (17,458)
Foreign 1,736 2,305 1,537 — 1,467
Deferred (47,188) (137) (31,241) (17,117) (72,950)
Income taxes provision for (benefit from) 74,203 54,686 (24,521) (14,585) (71,034)

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Enphase Energy Inc. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Enphase Energy Inc. deferred increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Income taxes provision for (benefit from) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Enphase Energy Inc. income taxes provision for (benefit from) increased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

Enphase Energy Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 14.46% 12.10% -20.28% -12.21% -78.83%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Enphase Energy Inc. effective income tax rate increased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Enphase Energy Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Allowances and reserves 53,191 40,166 18,764 13,146 10,726
Net operating loss and tax credit carryforwards 23,267 26,748 65,699 53,116 54,369
Stock-based compensation 15,811 20,230 12,935 4,598 3,753
Deferred revenue 53,656 40,120 27,778 20,765 16,736
Fixed assets, goodwill and intangibles — 609 39,711 8,706 2,720
Sec. 163(j) interest carryforward — — 10,749 4,401 —
Convertible notes and related hedges 38,773 49,405 — — —
Capitalized research and development expense 83,098 47,870 — — —
Other 15,189 11,099 1,609 7,007 1,109
Deferred tax assets 282,985 236,247 177,245 111,739 89,413
Fixed assets and intangibles (2,833) — — — —
Goodwill — — (31,805) (1,719) (1,368)
Unremitted foreign earnings (5,189) (3,755) (2,226) (7) (5)
Deferred cost of goods sold (27,782) (32,449) (23,713) (17,545) (14,374)
Deferred tax liabilities (35,804) (36,204) (57,744) (19,271) (15,747)
Net deferred tax asset (liability) 247,181 200,043 119,501 92,468 73,666

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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Enphase Energy Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Enphase Energy Inc. net deferred tax asset (liability) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Enphase Energy Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 252,370 204,872 122,470 92,904 74,531
Deferred tax liabilities 5,189 4,829 2,969 436 865

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Enphase Energy Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Enphase Energy Inc. deferred tax liabilities increased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Enphase Energy Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 3,383,012 3,084,280 2,079,256 1,200,102 713,223
Less: Noncurrent deferred tax assets, net 252,370 204,872 122,470 92,904 74,531
Total assets (adjusted) 3,130,642 2,879,408 1,956,786 1,107,198 638,692
Adjustment to Total Liabilities
Total liabilities (as reported) 2,399,388 2,258,707 1,649,088 716,109 441,011
Less: Noncurrent deferred tax liabilities, net 5,189 4,829 2,969 436 865
Total liabilities (adjusted) 2,394,199 2,253,878 1,646,119 715,673 440,146
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 983,624 825,573 430,168 483,993 272,212
Less: Net deferred tax assets (liabilities) 247,181 200,043 119,501 92,468 73,666
Stockholders’ equity (adjusted) 736,443 625,530 310,667 391,525 198,546
Adjustment to Net Income
Net income (as reported) 438,936 397,362 145,449 133,995 161,148
Add: Deferred income tax expense (benefit) (47,188) (137) (31,241) (17,117) (72,950)
Net income (adjusted) 391,748 397,225 114,208 116,878 88,198

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).

Enphase Energy Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Enphase Energy Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 19.16% 17.05% 10.52% 17.30% 25.81%
Adjusted net profit margin 17.10% 17.04% 8.26% 15.09% 14.13%
Total Asset Turnover
Reported total asset turnover 0.68 0.76 0.66 0.65 0.88
Adjusted total asset turnover 0.73 0.81 0.71 0.70 0.98
Financial Leverage
Reported financial leverage 3.44 3.74 4.83 2.48 2.62
Adjusted financial leverage 4.25 4.60 6.30 2.83 3.22
Return on Equity (ROE)
Reported ROE 44.62% 48.13% 33.81% 27.69% 59.20%
Adjusted ROE 53.19% 63.50% 36.76% 29.85% 44.42%
Return on Assets (ROA)
Reported ROA 12.97% 12.88% 7.00% 11.17% 22.59%
Adjusted ROA 12.51% 13.80% 5.84% 10.56% 13.81%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Enphase Energy Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Enphase Energy Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Enphase Energy Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Enphase Energy Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Enphase Energy Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Enphase Energy Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income 438,936 397,362 145,449 133,995 161,148
Net revenues 2,290,786 2,330,853 1,382,049 774,425 624,333
Profitability Ratio
Net profit margin1 19.16% 17.05% 10.52% 17.30% 25.81%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 391,748 397,225 114,208 116,878 88,198
Net revenues 2,290,786 2,330,853 1,382,049 774,425 624,333
Profitability Ratio
Adjusted net profit margin2 17.10% 17.04% 8.26% 15.09% 14.13%

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).

2023 Calculations

1 Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 438,936 ÷ 2,290,786 = 19.16%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenues
= 100 × 391,748 ÷ 2,290,786 = 17.10%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Enphase Energy Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net revenues 2,290,786 2,330,853 1,382,049 774,425 624,333
Total assets 3,383,012 3,084,280 2,079,256 1,200,102 713,223
Activity Ratio
Total asset turnover1 0.68 0.76 0.66 0.65 0.88
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net revenues 2,290,786 2,330,853 1,382,049 774,425 624,333
Adjusted total assets 3,130,642 2,879,408 1,956,786 1,107,198 638,692
Activity Ratio
Adjusted total asset turnover2 0.73 0.81 0.71 0.70 0.98

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).

2023 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 2,290,786 ÷ 3,383,012 = 0.68

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 2,290,786 ÷ 3,130,642 = 0.73

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Enphase Energy Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets 3,383,012 3,084,280 2,079,256 1,200,102 713,223
Stockholders’ equity 983,624 825,573 430,168 483,993 272,212
Solvency Ratio
Financial leverage1 3.44 3.74 4.83 2.48 2.62
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 3,130,642 2,879,408 1,956,786 1,107,198 638,692
Adjusted stockholders’ equity 736,443 625,530 310,667 391,525 198,546
Solvency Ratio
Adjusted financial leverage2 4.25 4.60 6.30 2.83 3.22

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).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 3,383,012 ÷ 983,624 = 3.44

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 3,130,642 ÷ 736,443 = 4.25

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Enphase Energy Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income 438,936 397,362 145,449 133,995 161,148
Stockholders’ equity 983,624 825,573 430,168 483,993 272,212
Profitability Ratio
ROE1 44.62% 48.13% 33.81% 27.69% 59.20%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 391,748 397,225 114,208 116,878 88,198
Adjusted stockholders’ equity 736,443 625,530 310,667 391,525 198,546
Profitability Ratio
Adjusted ROE2 53.19% 63.50% 36.76% 29.85% 44.42%

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).

2023 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 438,936 ÷ 983,624 = 44.62%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 391,748 ÷ 736,443 = 53.19%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Enphase Energy Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income 438,936 397,362 145,449 133,995 161,148
Total assets 3,383,012 3,084,280 2,079,256 1,200,102 713,223
Profitability Ratio
ROA1 12.97% 12.88% 7.00% 11.17% 22.59%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 391,748 397,225 114,208 116,878 88,198
Adjusted total assets 3,130,642 2,879,408 1,956,786 1,107,198 638,692
Profitability Ratio
Adjusted ROA2 12.51% 13.80% 5.84% 10.56% 13.81%

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).

2023 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 438,936 ÷ 3,383,012 = 12.97%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 391,748 ÷ 3,130,642 = 12.51%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Enphase Energy Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.