Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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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- Common-Size Balance Sheet: Assets
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2012
- Return on Equity (ROE) since 2012
- Return on Assets (ROA) since 2012
- Price to Sales (P/S) since 2012
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Enphase Energy Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a generally declining trend from March 31, 2020 (23.93) through December 31, 2021 (16.82), indicating reduced efficiency in utilizing fixed assets for revenue generation over this period. A moderate recovery is observed during 2022, with the ratio increasing to a peak of 21.99 in September 2022, suggesting improved asset utilization. However, from the last quarter of 2022 into 2023, the ratio again declined, reaching 13.62 by December 31, 2023, pointing toward a significant reduction in fixed asset productivity in the most recent periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted measure follows a similar pattern to the traditional net fixed asset turnover but at consistently lower levels, reflecting the inclusion of leased assets in the asset base. From March 31, 2020 (17.18), the ratio decreased steadily until the end of 2021 (14.31). In 2022, there was an increase reaching 18.37 in September, followed by a decline through 2023, ending at 12.18. The fluctuations indicate changes in how leased assets contribute to revenue relative to their accounting treatment, with recent performance suggesting diminishing efficiency.
- Total Asset Turnover
- The total asset turnover ratio showed a decline from 0.71 in March 2020 to a low of 0.40 at March 31, 2021, indicating a significant drop in the company's ability to generate revenue from its overall asset base. Thereafter, the ratio improved steadily throughout the remainder of 2021 and into 2022, peaking at 0.81 in June 2023, the highest level in the observed periods. However, a slight decrease followed, ending at 0.68 in December 2023. Overall, despite volatility, total asset turnover improved post-2021, suggesting better asset utilization in the mid-term.
- Equity Turnover
- The equity turnover ratio declined sharply from 2.31 in March 2020 to 1.19 in March 2021, reflecting lower revenue generation relative to shareholder equity during that time. A notable rebound occurred in the second half of 2021, reaching a pronounced peak of 4.60 in March 2022. This significant increase may indicate either rapid revenue growth or a reduction in equity base. Following this peak, the ratio gradually decreased through 2023, settling at 2.33 in December 2023. The pattern suggests considerable volatility in equity utilization, with a period of strong efficiency followed by a normalization.
Net Fixed Asset Turnover
Enphase Energy Inc., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Net fixed asset turnover
= (Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023)
÷ Property and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues display a generally upward trajectory from March 2020 through December 2022, increasing from approximately $205.5 million to $724.7 million. This reflects substantial growth across the observed periods. Notably, the highest quarterly revenue was recorded in December 2022. However, starting from the first quarter of 2023, there is a notable decline, with revenues descending sharply to around $302.6 million by December 2023. This significant reduction after a period of consistent growth may indicate challenges in sustaining prior sales momentum or market conditions impacting revenue generation.
- Property and Equipment, Net
- The value of net property and equipment has exhibited steady growth throughout the entire period. From about $30.5 million in March 2020, the asset base increased consistently each quarter, peaking around $173 million in September 2023 before a slight decrease by the year-end to approximately $168.2 million. This expansion suggests ongoing capital investment and asset acquisition to support business operations and capacity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio shows a declining trend over the period analyzed. Starting from a high ratio of 23.93 in March 2020, this metric decreases steadily to around 13.62 by December 2023. A falling turnover ratio, despite growing property and equipment values and initial revenue increases, indicates that asset utilization efficiency is deteriorating. This trend implies that the company is generating less revenue per unit of fixed asset over time, which could be due to underutilization of assets, slowing sales relative to asset growth, or inefficiencies in operational management.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Enphase Energy Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 | |||||||||||||||||||||
| Micron Technology Inc. | |||||||||||||||||||||
| NVIDIA Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data exhibits several notable trends across the observed periods, reflecting changes in operational scale, asset utilization, and revenue performance.
- Net Revenues
- Net revenues demonstrate a clear upward trajectory from March 2020 through December 2022, growing from approximately $205.5 million to a peak of about $724.7 million. This growth signifies a strong expansion phase over nearly three years. However, beginning in the first quarter of 2023, revenues begin to decline sharply, falling to roughly $302.6 million by the end of December 2023. This reversal indicates a significant contraction in sales or operational activity in the most recent quarters.
- Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- The net value of property and equipment shows a consistent and steady increase across the entire period. Starting from around $42.5 million in March 2020, it rises to approximately $194.2 million by September 2023, with a slight decrease to about $188.1 million in December 2023. This growth suggests ongoing capital investments or lease acquisitions to support expanding operations, though the marginal decline at the end may point to asset disposals, write-downs, or lease terminations.
- Net Fixed Asset Turnover Ratio (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio indicates how efficiently the company is utilizing its property and equipment to generate revenues. Initially, the ratio declines from 17.18 in March 2020 to a low of about 12.38 in March 2021, suggesting diminished efficiency possibly due to rapid asset addition outpacing revenue growth. Subsequently, the ratio improves and fluctuates with a trend peaking above 18 in September 2022. However, after this peak, the ratio declines steadily to around 12.18 by December 2023, paralleling the fall in net revenues in the recent quarters. This decline may indicate reduced operational efficiency or underutilization of assets linked to the drop in sales volume.
Overall, the period from early 2020 to late 2022 reflects robust growth in revenues accompanied by increased asset base and initially declining but subsequently improving asset utilization. The steep decline in revenues and asset turnover beginning in early 2023 signals emerging challenges in maintaining previous growth momentum or changes in market conditions or company strategy. The increase in property and equipment values implies significant asset buildup which, given the recent downturn in revenue and turnover, could result in underutilized resources moving forward.
Total Asset Turnover
Enphase Energy Inc., total asset turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Total asset turnover
= (Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues showed a generally increasing trend from the first quarter of 2020 through the fourth quarter of 2022, with the exception of the second quarter of 2020, which registered a notable decline. Starting at approximately $205.5 million in Q1 2020, revenues peaked at around $724.7 million in Q4 2022. Following this peak, there was a significant reduction in revenues in 2023, particularly in Q3 and Q4, where revenues dropped sharply to $551.1 million and further to $302.6 million, respectively.
- Total Assets
- Total assets more than tripled from Q1 2020 to Q4 2023. Starting from about $1.03 billion in Q1 2020, assets increased steadily, surpassing $3 billion by the end of 2022 and reaching a maximum of approximately $3.55 billion in Q3 2023. There was a slight decrease in total assets in the final quarter of 2023, with the figure reducing to approximately $3.38 billion.
- Total Asset Turnover
- The total asset turnover ratio began at relatively high levels around 0.7 in early 2020, indicating efficient use of assets in generating revenues. This ratio then decreased substantially throughout 2021, hitting a low of 0.40 in Q1 2021. From Q2 2021 onward, asset turnover improved steadily, reaching a peak of 0.81 in Q2 2023. This improvement suggests enhanced efficiency in using assets to generate sales, despite the overall increase in asset base. However, in Q4 2023, asset turnover declined again to 0.68, indicating a reduction in turnover efficiency.
- Summary
- Over the analyzed period, the company experienced strong revenue growth accompanying a significant expansion in its asset base, particularly peaking by late 2022. Following the peak revenue period, revenues sharply declined in 2023, coinciding with a stabilization and slight decrease in total assets. The total asset turnover ratio exhibited volatility, dipping notably in early 2021 but recovering steadily through mid-2023 before falling again by the end of 2023. These trends suggest an initial period of rapid growth and asset accumulation, followed by challenges in maintaining revenue levels and asset efficiency in the most recent quarters.
Equity Turnover
Enphase Energy Inc., equity turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Net revenues | |||||||||||||||||||||
| Stockholders’ equity (deficit) | |||||||||||||||||||||
| 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. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Equity turnover
= (Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023)
÷ Stockholders’ equity (deficit)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and insights regarding the company’s revenues, equity, and efficiency ratios over the examined periods.
- Net Revenues
- The company's net revenues demonstrate a general upward trajectory from March 2020 through December 2022, increasing from approximately $205.5 million to a peak of about $724.7 million. This upward trend indicates strong revenue growth over this nearly three-year span. However, starting from March 2023, net revenues show a marked decline, dropping sharply to approximately $302.6 million by the end of that year. This suggests a significant deceleration or contraction in sales in the most recent quarters.
- Stockholders’ Equity
- Stockholders’ equity, measured in thousands of US dollars, reflects substantial growth from roughly $316.2 million in March 2020 to a peak of approximately $1.015 billion by September 2023. Despite some fluctuations, including a notable dip in December 2021, the overall trend is strongly positive, indicating successful capital accumulation or retained earnings increases. The equity value slightly decreased in the last reported quarter but remains considerably higher than the earlier periods.
- Equity Turnover Ratio
- The equity turnover ratio, which measures how efficiently the company utilizes its equity to generate revenue, exhibits variability across the quarters. Initially, it declines from 2.31 in March 2020 to a low of 1.19 by March 2021, implying less efficient equity use during this period. Subsequently, the ratio recovers and peaks sharply at 4.6 by March 2022, denoting improved operational efficiency or revenue generation relative to equity held. Following this peak, the ratio gradually declines to 2.33 by December 2023, suggesting a reduction in efficiency, though it remains above the lower levels observed earlier in the timeline.
In summary, the data reveals robust revenue growth through late 2022, accompanied by strong increases in stockholders’ equity, reflecting financial strengthening. The equity turnover ratio indicates fluctuations in operational efficiency, with a remarkable peak in early 2022 followed by a gradual normalization. The sharp decline in revenues in 2023 may warrant further investigation to understand the underlying causes and potential impacts.