Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Enphase Energy Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accounts payable	116,164)	125,085)	113,767)	72,609)	57,474)
Customer rebates and sales incentives	158,338)	153,916)	79,038)	36,622)	24,198)
Liability due to supply agreements	32,973)	17,341)	14,653)	5,500)	1,729)
Freight	19,262)	35,011)	20,522)	10,300)	4,908)
Salaries, commissions, incentive compensation and benefits	10,316)	18,009)	13,062)	6,634)	5,524)
Income tax payable	8,531)	16,146)	340)	—)	—)
Operating lease liabilities, current	5,220)	5,371)	3,830)	4,542)	3,170)
Contingent consideration	—)	—)	3,710)	—)	—)
VAT payable	3,243)	19,852)	7,231)	—)	—)
Post combination expense accrual	—)	9,138)	8,602)	—)	—)
Liabilities related to restructuring activities	3,104)	714)	—)	—)	—)
Other	20,932)	20,441)	6,924)	12,944)	7,563)
Accrued liabilities	261,919)	295,939)	157,912)	76,542)	47,092)
Deferred revenues, current	118,300)	90,747)	62,670)	47,665)	81,783)
Warranty obligations, current	36,066)	35,556)	19,395)	11,260)	10,078)
Debt, current	—)	90,892)	86,052)	325,967)	2,884)
Current liabilities	532,449)	638,219)	439,796)	534,043)	199,311)
Deferred revenues, non-current	369,172)	281,613)	187,186)	125,473)	100,204)
Warranty obligations, non-current	153,021)	95,890)	53,982)	34,653)	27,020)
Other liabilities	51,008)	43,520)	16,530)	17,042)	11,817)
Debt, non-current	1,293,738)	1,199,465)	951,594)	4,898)	102,659)
Non-current liabilities	1,866,939)	1,620,488)	1,209,292)	182,066)	241,700)
Total liabilities	2,399,388)	2,258,707)	1,649,088)	716,109)	441,011)
Common stock, $0.00001 par value	1)	1)	1)	1)	1)
Additional paid-in capital	939,338)	819,119)	837,924)	534,744)	458,315)
Accumulated equity (deficit)	46,273)	17,335)	(405,737)	(51,186)	(185,181)
Accumulated other comprehensive income (loss)	(1,988)	(10,882)	(2,020)	434)	(923)
Stockholders’ equity	983,624)	825,573)	430,168)	483,993)	272,212)
Total liabilities and stockholders’ equity	3,383,012)	3,084,280)	2,079,256)	1,200,102)	713,223)

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 financial data reveals significant developments in liabilities and equity over the five-year period. There is a pronounced increase in total liabilities, rising from approximately $441 million in 2019 to nearly $2.4 billion in 2023. This growth is primarily driven by sharp increases in both current and non-current liabilities.

Current Liabilities: Current liabilities surged from roughly $199 million in 2019 to $532 million in 2023, with fluctuations in certain accounts. Notable increases include accrued liabilities, which escalated from about $47 million to approximately $262 million, and customer rebates and sales incentives, which expanded dramatically from $24 million to $158 million. Accounts payable showed growth until 2022, then declined slightly in 2023. Freight expenses increased substantially until 2022 before falling in 2023.
Non-Current Liabilities: Non-current liabilities exhibited considerable volatility, with a steep rise from $242 million in 2019 to nearly $1.87 billion in 2023. Debt non-current experienced a significant jump from $5 million in 2020 to over $1.29 billion in 2023, indicating substantial borrowing or financing activities. Warranty obligations, both current and non-current, increased consistently, highlighting heightened product support costs or risk exposure. Deferred revenues also showed continuous growth, reflecting possibly growing customer advances or subscription-based sales.
Income Taxes and Contingent Items: Income tax payable values appeared only beginning in 2021 with a peak in 2022 followed by a decrease in 2023. Some contingent and restructuring liabilities were recorded in the mid-periods, suggesting episodic or exceptional costs related to corporate restructuring or contingent obligations.
Stockholders’ Equity: Stockholders' equity improved markedly, from approximately $272 million in 2019 to almost $984 million by 2023. This growth is supported by a sizable increase in additional paid-in capital, which exceeded $939 million in 2023, offsetting accumulated deficits seen in prior years. Accumulated equity transitioned from negative to positive territory during 2022 and 2023, indicating a substantial recovery in retained earnings or improvements in net income.
Overall Capital Structure Trends: The data indicates a strategy involving increased leverage alongside equity injections. While liabilities ballooned, the company also augmented its equity base, leading to a total combined capital structure exceeding $3.38 billion by the end of 2023. The pattern suggests aggressive growth financed by debt and equity, with increasing customer prepayments and warranty provisions reflecting expanding business scale and potential risk considerations in product warranty commitments.

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Enphase Energy Inc. (NASDAQ:ENPH)

Balance Sheet: Liabilities and Stockholders’ Equity