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Enphase Energy Inc. (NASDAQ:ENPH)

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

Common-Size Balance Sheet: Assets

Enphase Energy Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents 8.54 15.34 5.74 56.61 35.25
Restricted cash 0.00 0.00 0.00 0.00 6.27
Marketable securities 41.57 36.95 43.16 0.00 0.00
Accounts receivable, net of allowances 13.18 14.29 16.05 15.18 20.39
Inventory 6.31 4.85 3.58 3.48 4.49
Prepaid expenses and other assets 2.63 1.97 1.82 2.48 3.66
Current assets 72.23% 73.41% 70.34% 77.75% 70.06%
Property and equipment, net 4.97 3.61 3.95 3.58 4.06
Operating lease, right of use asset, net 0.59 0.69 0.69 1.47 1.42
Intangible assets, net 2.03 3.23 4.70 2.40 4.29
Goodwill 6.34 6.92 8.72 2.07 3.47
Other assets 6.38 5.49 5.71 4.99 6.26
Deferred tax assets, net 7.46 6.64 5.89 7.74 10.45
Non-current assets 27.77% 26.59% 29.66% 22.25% 29.94%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The asset structure exhibits a consistent dominance of current assets, which have remained between 70.06% and 77.75% of total assets over the five-year period. This indicates a highly liquid financial position, characterized by a strategic reallocation of cash resources and a lean approach to long-term physical asset investment.

Liquidity and Cash Management
A significant transition in the composition of liquid assets occurred in 2021. Cash and cash equivalents, which peaked at 56.61% of total assets in 2020, declined sharply to 5.74% in 2021. This coincided with the emergence of marketable securities, which rose to 43.16% in 2021 and remained a primary asset component, ending at 41.57% in 2023. This pattern indicates a strategic shift toward optimizing returns on excess liquidity by moving funds from non-interest-bearing cash accounts into marketable securities.
Working Capital Dynamics
Accounts receivable have shown a steady downward trend as a percentage of total assets, decreasing from 20.39% in 2019 to 13.18% in 2023. This suggests improved collection efficiency or a shift in the scale of receivables relative to the total asset base. Conversely, inventory has experienced a gradual increase from 4.49% in 2019 to 6.31% in 2023, reflecting a slightly larger allocation of capital toward stock holdings.
Non-Current Asset Composition
Non-current assets have fluctuated between 22.25% and 29.94% of the total balance sheet. The organization maintains an asset-light model, with property and equipment remaining consistently low, ranging from 3.58% to 4.97%. There was a notable spike in goodwill in 2021, reaching 8.72%, which gradually moderated to 6.34% by 2023. Deferred tax assets also saw a reduction from a high of 10.45% in 2019 to 7.46% in 2023.
Overall Asset Stability
Despite the internal reallocation of liquid assets, the overarching ratio of current assets to non-current assets has remained stable. The persistence of current assets above 70% suggests a conservative liquidity strategy, providing the organization with substantial flexibility to meet short-term obligations and fund operational requirements.

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