Enphase Energy Inc., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (as reported)	438,936)	397,362)	145,449)	133,995)	161,148)
Add: Marketable securities, net change, net of income tax	7,704)	(5,677)	(2,120)	—)	—)
Net income (adjusted)	446,640)	391,685)	143,329)	133,995)	161,148)

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Enphase Energy Inc., adjusted profitability ratios

	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	19.50%	16.80%	10.37%	17.30%	25.81%
Return on Equity (ROE)
Reported ROE	44.62%	48.13%	33.81%	27.69%	59.20%
Adjusted ROE	45.41%	47.44%	33.32%	27.69%	59.20%
Return on Assets (ROA)
Reported ROA	12.97%	12.88%	7.00%	11.17%	22.59%
Adjusted ROA	13.20%	12.70%	6.89%	11.17%	22.59%

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

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	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	446,640)	391,685)	143,329)	133,995)	161,148)
Net revenues	2,290,786)	2,330,853)	1,382,049)	774,425)	624,333)
Profitability Ratio
Adjusted net profit margin²	19.50%	16.80%	10.37%	17.30%	25.81%

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 × 446,640 ÷ 2,290,786 = 19.50%

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	446,640)	391,685)	143,329)	133,995)	161,148)
Stockholders’ equity	983,624)	825,573)	430,168)	483,993)	272,212)
Profitability Ratio
Adjusted ROE²	45.41%	47.44%	33.32%	27.69%	59.20%

2023 Calculations

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

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 446,640 ÷ 983,624 = 45.41%

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	446,640)	391,685)	143,329)	133,995)	161,148)
Total assets	3,383,012)	3,084,280)	2,079,256)	1,200,102)	713,223)
Profitability Ratio
Adjusted ROA²	13.20%	12.70%	6.89%	11.17%	22.59%

2023 Calculations

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

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 446,640 ÷ 3,383,012 = 13.20%

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

Enphase Energy Inc. (NASDAQ:ENPH)

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