Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
Enphase Energy Inc. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Return on Assets (ROA) since 2012
- Current Ratio since 2012
- Debt to Equity since 2012
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Enphase Energy Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
Enphase Energy Inc., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
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).
- Current ratio
- The current ratio demonstrated a fluctuating but overall increasing trend from 2019 to 2023. It started at 2.51 in 2019, decreased significantly to 1.75 in 2020, then sharply rose to 3.33 in 2021, continuing a moderate increase to 3.55 in 2022, and further reaching a high of 4.59 in 2023. This indicates a strengthening short-term liquidity position over the five-year period, with the firm becoming more capable of covering its short-term liabilities with current assets.
- Quick ratio
- The quick ratio followed a similar trajectory to the current ratio. It declined from 2.22 in 2019 to 1.61 in 2020 but rebounded significantly to 3.07 in 2021. Subsequent years saw moderate increases to 3.22 in 2022 and 4.02 in 2023. This pattern suggests an improvement in liquidity with a focus on more liquid assets, excluding inventory, enhancing the company’s ability to meet immediate liabilities without relying on inventory sales.
- Cash ratio
- The cash ratio exhibited a consistent upward trend after a mid-period dip. Starting from 1.49 in 2019, it declined slightly to 1.27 in 2020 but then increased substantially to 2.31 in 2021. This upward momentum continued with values of 2.53 in 2022 and 3.18 in 2023. The increase in the cash ratio implies a progressively stronger ability to cover short-term obligations solely with cash and cash equivalents, reflecting an increasingly conservative liquidity management approach.
Current Ratio
Enphase Energy Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| Monolithic Power Systems Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Current Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Current Ratio, Industry | ||||||
| Information Technology | ||||||
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).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibited a strong upward trend from 2019 to 2023. Starting at $499,657 thousand in 2019, the figure increased substantially each year, reaching $2,443,518 thousand by 2023. This represents nearly a fivefold increase over the five-year period, indicating significant growth in liquid assets and short-term resources available to the company.
- Current Liabilities
- Current liabilities showed volatility over the period. An increase was observed from $199,311 thousand in 2019 to a peak of $534,043 thousand in 2020. Following that, liabilities declined to $439,796 thousand in 2021, climbed again to $638,219 thousand in 2022, and decreased to $532,449 thousand in 2023. Despite fluctuations, the 2023 value remains significantly higher than the 2019 baseline, suggesting elevated short-term obligations compared to the start of the period.
- Current Ratio
- The current ratio demonstrated fluctuations with an overall positive trend, reflecting the company's improving liquidity position. It began at a healthy 2.51 in 2019, dipped to 1.75 in 2020 indicating tighter liquidity, then improved markedly to 3.33 in 2021. Further increases followed with ratios of 3.55 in 2022 and a notable increase to 4.59 in 2023. The rising current ratio suggests enhanced ability to cover short-term liabilities with current assets, reflecting stronger short-term financial health over time.
Quick Ratio
Enphase Energy Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | ||||||
| Restricted cash | ||||||
| Marketable securities | ||||||
| Accounts receivable, net of allowances | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| Monolithic Power Systems Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Quick Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Quick Ratio, Industry | ||||||
| Information Technology | ||||||
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).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets demonstrate a consistent and substantial upward trend over the five-year period. Starting at approximately 441.5 million US dollars in 2019, the value nearly doubles in 2020 to 861.5 million, followed by significant increases in each subsequent year, culminating at over 2.14 billion US dollars by the end of 2023. This growth indicates a strengthening in liquid or near-liquid assets, enhancing the entity's short-term financial flexibility.
- Current liabilities
- Current liabilities portray fluctuations throughout the same period. From around 199.3 million US dollars in 2019, liabilities sharply increase to 534 million in 2020. This is followed by a decline in 2021 to approximately 439.8 million, then an increase again in 2022 to about 638.2 million, before falling back to roughly 532.4 million in 2023. The variation suggests periods of changing short-term obligations, which may impact liquidity management practices.
- Quick ratio
- The quick ratio reflects the relationship between liquid assets and current liabilities, thereby indicating short-term financial health. Despite some volatility in current liabilities, the ratio overall shows marked improvement, beginning at 2.22 in 2019, dipping to 1.61 in 2020, then sharply increasing to levels exceeding 3 in 2021 and beyond. By 2023, the quick ratio reaches 4.02, suggesting a strong liquidity position, with quick assets significantly exceeding short-term liabilities and enhancing the company's ability to meet its immediate financial obligations.
- Summary
- Overall, the data reveals a trend of significant enhancement in liquid asset availability accompanied by manageable fluctuations in current liabilities. The resultant increase in the quick ratio across the period points to strengthened short-term financial stability. These patterns suggest improved liquidity management, positioning the company well to cover current liabilities through readily accessible assets.
Cash Ratio
Enphase Energy Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | ||||||
| Restricted cash | ||||||
| Marketable securities | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| Monolithic Power Systems Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Cash Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Cash Ratio, Industry | ||||||
| Information Technology | ||||||
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).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets have shown a consistent upward trend over the five-year period. Starting at approximately $296 million at the end of 2019, the value more than doubled by the end of 2020 to about $679 million. This growth continued in the subsequent years, reaching approximately $1.02 billion at the end of 2021, around $1.61 billion at the end of 2022, and approximately $1.70 billion by the end of 2023. This steady increase indicates a strong accumulation of liquid assets over time.
- Current Liabilities
- Current liabilities experienced significant fluctuations. In 2019, liabilities were valued at about $199 million, which sharply increased to approximately $534 million by the end of 2020. In 2021, there was a reduction to roughly $440 million, followed by a rise again to about $638 million at the end of 2022. By the end of 2023, current liabilities decreased to approximately $532 million. The variances suggest changes in short-term obligations, which may be influenced by operational or financial activities affecting working capital.
- Cash Ratio
- The cash ratio, an indicator of liquidity measuring the ability to cover current liabilities with cash or cash equivalents, displayed a general positive trend. Starting at 1.49 in 2019, it slightly decreased to 1.27 in 2020 despite the significant increase in liabilities, indicating relatively tighter liquidity. From 2021 onwards, the ratio improved notably, reflecting enhanced liquidity position: 2.31 in 2021, 2.53 in 2022, and reaching 3.18 in 2023. The rising cash ratio highlights an increasing capacity to meet short-term liabilities primarily through liquid assets.
- Summary
- Over the analyzed period, the entity demonstrated substantial growth in total cash assets, suggesting strong cash generation or capital raising activities. Although current liabilities fluctuated, the company maintained a robust liquidity position, as evidenced by the increasing cash ratio. This pattern indicates effective management of cash resources relative to short-term obligations, leading to improved financial stability and reduced liquidity risk.