Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Enphase Energy Inc., long-term (investment) activity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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 analysis of the given financial ratios over the five-year period reveals several notable trends in asset utilization and equity turnover.
- Net Fixed Asset Turnover
- This ratio shows a declining trend overall, starting at 21.58 in 2019 and decreasing to 13.62 by 2023, with some fluctuations. The ratio dropped to its lowest point of 16.82 in 2021 and slightly rebounded in 2022 before falling again in 2023. This decline suggests that the efficiency in generating revenue from net fixed assets has diminished over the period.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- This adjusted ratio follows a similar downward trajectory, beginning at 15.99 in 2019 and declining steadily to 12.18 in 2023. Although there was a mild increase in 2021 and 2022, the overall trend indicates a decreasing ability to generate sales from fixed assets even when considering operating leases.
- Total Asset Turnover
- The total asset turnover ratio decreased from 0.88 in 2019 to 0.65 in 2020, then remained relatively stable around 0.66 to 0.76 until 2022, with a slight decline to 0.68 in 2023. This pattern points to a reduced efficiency in utilizing total assets to produce revenue, with some signs of stabilization in the middle years but a modest decline in the latest period.
- Equity Turnover
- The equity turnover ratio exhibits volatility, decreasing sharply from 2.29 in 2019 to 1.6 in 2020, followed by a significant increase to 3.21 in 2021. It then slightly declined in the subsequent years, ending at 2.33 in 2023. Despite fluctuations, the ratio in 2023 remains close to the initial 2019 level, suggesting a recovery in the capacity to generate revenue from shareholders’ equity after the initial drop.
Overall, the data suggests a general decline in asset efficiency ratios, with some recovery periods, but the equity turnover shows greater volatility with an overall return to levels similar to those seen at the start of the period. These trends may reflect changes in asset management, investment in fixed assets, or shifts in business operations affecting asset utilization efficiency.
Net Fixed Asset Turnover
Enphase Energy Inc., net fixed asset turnover 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) | ||||||
| Net revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover, 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
Net fixed asset turnover = Net revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net revenues
- Net revenues exhibited a consistent upward trend from 2019 through 2022, increasing from approximately $624 million to over $2.33 billion. This represents a substantial growth exceeding threefold in this four-year period. However, in 2023, net revenues slightly declined to approximately $2.29 billion, indicating a marginal contraction following the strong growth phase.
- Property and equipment, net
- The net value of property and equipment demonstrated a steady increase over the analyzed years. Starting from about $29 million in 2019, the asset base expanded significantly each year, reaching $168 million by 2023. This suggests ongoing investment in fixed assets, with a more than fivefold increase over the period, likely supporting operational capacity and growth.
- Net fixed asset turnover
- The net fixed asset turnover ratio started at a high level of 21.58 in 2019 and generally declined until 2021, reaching 16.82. This indicates a decrease in efficiency in using fixed assets to generate revenues. In 2022, the ratio rebounded to 20.93, approaching the earlier high levels, but then dropped markedly to 13.62 in 2023, the lowest point in the period. This decline suggests that despite continued asset growth, the ability to generate revenue per unit of fixed assets diminished significantly in the latest year.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Enphase Energy Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | ||||||
| Property and equipment, net | ||||||
| Operating lease, right of use asset, net | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), 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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period ending in 2023.
- Net Revenues
- There is a consistent and significant increase in net revenues from 2019 to 2022, rising from approximately $624 million to over $2.33 billion. This represents nearly a fourfold increase in four years. However, in 2023, net revenues slightly declined to approximately $2.29 billion, indicating a minor setback after robust growth in previous years.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease and right-of-use assets, exhibits steady growth throughout the entire period. Starting at about $39 million in 2019, it more than quadruples by 2023, reaching around $188 million. This consistent increase suggests ongoing investment in long-term assets and expansion of operational capacity.
- Net Fixed Asset Turnover (Including Operating Lease and Right-of-Use Asset)
- The net fixed asset turnover ratio shows fluctuation across the years. It started relatively high at 15.99 in 2019, dipped to 12.76 in 2020, then improved to 14.31 in 2021 and reached a peak of 17.56 in 2022. In 2023, there is a notable decline to 12.18. This pattern indicates varying efficiency in utilizing fixed assets to generate revenue. The peak in 2022 suggests optimal asset utilization, while the subsequent decline in 2023 might reflect increased asset base outpacing revenue growth or operational challenges.
Total Asset Turnover
Enphase Energy Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Total Asset Turnover, 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
Total asset turnover = Net revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues exhibit a substantial upward trend from 2019 to 2022, increasing from approximately 624 million US dollars to over 2.33 billion US dollars. However, in 2023, there is a slight decline in net revenues to around 2.29 billion US dollars, indicating a potential stabilization or minor setback after several years of significant growth.
- Total Assets
- Total assets show consistent growth throughout the period, rising steadily from about 713 million US dollars in 2019 to over 3.38 billion US dollars by the end of 2023. This reflects a continuous expansion of the asset base, possibly supporting increased operational capacity or investments.
- Total Asset Turnover
- Total asset turnover, which measures efficiency in using assets to generate revenue, declines sharply from 0.88 in 2019 to 0.65 in 2020 and remains relatively stable around 0.65-0.68 through 2021 and 2023, with a slight increase to 0.76 in 2022. This suggests that, while the company has increased its asset base substantially, its efficiency in deploying these assets to generate revenue has generally decreased compared to 2019, with a minor improvement in 2022.
Equity Turnover
Enphase Energy Inc., equity turnover 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) | ||||||
| Net revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Equity Turnover, 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
Equity turnover = Net revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues exhibited a significant upward trend from 2019 to 2022, rising from approximately 624 million USD in 2019 to over 2.33 billion USD in 2022. This marks a near quadrupling of revenue within three years. However, in 2023, there was a slight decline, with net revenues decreasing marginally to about 2.29 billion USD. This mild drop after a robust growth phase suggests a plateau or modest correction in sales or market demand.
- Stockholders’ Equity
- Stockholders’ equity showed an overall increasing trend across the five-year period. It rose from roughly 272 million USD in 2019 to nearly 1 billion USD by the end of 2023. Notably, there was a significant jump between 2021 and 2022, growing from 430 million USD to 826 million USD, and continuing upward to 984 million USD in 2023. This suggests strengthening financial stability and accumulation of retained earnings or capital infusion during these years.
- Equity Turnover
- The equity turnover ratio displayed notable fluctuations. It began at 2.29 in 2019, declined to 1.6 in 2020, and then surged sharply to 3.21 in 2021. Following this peak, the ratio decreased to 2.82 in 2022 and further to 2.33 in 2023. The initial dip in 2020 may reflect reduced efficiency in utilizing equity to generate sales during that year, possibly influenced by external economic conditions. The subsequent increase in 2021 indicates improved utilization of equity to generate revenues, though this efficiency tapered gradually in the following two years.
- Summary
- Overall, the data reveals strong growth in both revenues and equity from 2019 through 2022, with a deceleration in revenue growth in 2023. The equity base expanded substantively, enhancing financial strength. Fluctuations in the equity turnover ratio suggest variability in how effectively the company converted equity into revenues, with a peak efficiency in 2021 followed by a moderate decline. This pattern may reflect evolving operational dynamics or market conditions impacting productivity and capital utilization.