Stock Analysis on Net

Enphase Energy Inc. (NASDAQ:ENPH)

$22.49

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

Analysis of Liquidity Ratios
Quarterly Data

Microsoft Excel

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Liquidity Ratios (Summary)

Enphase Energy Inc., liquidity ratios (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio
Quick ratio
Cash ratio

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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).


The analysis of the liquidity ratios over the examined quarterly periods reveals several notable trends and fluctuations in the company's short-term financial health.

Current Ratio
The current ratio exhibits significant variability throughout the periods. Starting from moderate levels near 1.52 in early 2019, it increased steadily to peak at 3.39 by mid-2020. A sharp decline followed by the end of 2020 brought the ratio down to 1.75, indicating a reduced ability to cover short-term liabilities. However, a substantial recovery occurred in early 2021, reaching a maximum value of 5.2. Subsequently, the ratio tapered gradually but remained generally elevated above 3.0 through 2022 and early 2023 before a notable increase to 4.59 in the last period under review, suggesting improved liquidity management or growth in current assets relative to current liabilities.
Quick Ratio
The quick ratio follows a pattern similar to the current ratio but consistently remains lower, as expected due to the exclusion of inventory from current assets. The ratio climbed from 1.24 at the start of 2019 to a peak of 3.12 by mid-2020, reflecting an increase in highly liquid assets. A decline occurred at the end of 2020 to 1.61, then sharply increased to 5.01 at the beginning of 2021. Following this peak, the quick ratio gently declined through 2021 and 2022, stabilizing slightly above 3.0 into early 2023. A final rise to 4.02 in the last reported quarter indicates a reinforcing of liquid asset reserves, enhancing the company's immediate liquidity position.
Cash Ratio
The cash ratio shows a similar volatility but at generally lower values than both the current and quick ratios, consistent with its focus solely on the most liquid assets. Initial levels were around 0.61 in early 2019, rising significantly to 2.72 by mid-2020. After a decrease to 1.27 at the end of 2020, the ratio surged to 4.32 in early 2021, indicating enhanced cash holdings or equivalents relative to current liabilities. Thereafter, the ratio slightly decreased but remained fairly stable near 2.5 through much of 2022 and the first half of 2023 with minor fluctuations. The ratio ended with an increase to 3.18, suggesting strengthening in the company's cash position, which supports overall liquidity resilience.

Overall, the liquidity ratios demonstrate a pattern of general improvement in the company's capacity to cover short-term obligations, especially noted during early 2021 when significant peaks in all three ratios were observed. Despite some volatility, the sustained elevated levels of liquidity ratios in recent periods indicate a conservative or strengthened liquidity strategy, potentially aimed at mitigating risks associated with short-term liabilities.


Current Ratio

Enphase Energy Inc., current ratio calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 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.
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.


Current Assets
The current assets displayed a general upward trajectory over the entire period. Starting at approximately $195 million in March 2019, the figure rose steadily, with some fluctuations, reaching a peak of over $2.56 billion by September 2023. Following this peak, there was a slight decline to around $2.44 billion by December 2023. Noteworthy points include the substantial increase between December 2019 and March 2020, which indicates a significant buildup of liquid or near-liquid resources just prior to and during the early stages of the 2020 fiscal year.
Current Liabilities
Current liabilities also showed a rising trend, increasing from about $129 million in March 2019 to a maximum level of approximately $774 million in September 2023. However, unlike current assets, the liabilities decreased notably in the last quarter to around $532 million at December 2023. The liabilities almost doubled between December 2019 and December 2020, reaching above half a billion, signaling a potential increase in short-term financial obligations during that timeframe.
Current Ratio
The current ratio, calculated as current assets divided by current liabilities, exhibited substantial fluctuations throughout the period. Initially, the ratio rose from 1.52 in March 2019 to a peak of 3.39 in June 2020, indicating an expansion in liquidity relative to obligations. The period from March 2021 to December 2023 saw relatively high ratios, consistently above 3.3, reaching as high as 5.20 in March 2021, demonstrating strong short-term financial stability. Notably, the ratio experienced a significant dip to 1.75 in December 2020, which corresponds with a sharp increase in current liabilities that outpaced growth in current assets. The recovery and maintenance of a high current ratio after this point suggest effective management of working capital.
Overall Analysis
The company showed robust growth in current assets over the observed period, indicating improved liquidity and asset accumulation. Although current liabilities increased, particularly in 2020, the current ratio indicates that the company maintained strong liquidity margins most of the time. The dip in the ratio at the end of 2020 could reflect a temporary strain on liquidity, but subsequent quarters show recovery and stability. The high current ratios beyond 2021 imply that the company has managed its short-term liabilities conservatively relative to its assets. The slight reduction in current assets with simultaneous decrease in liabilities at the end of 2023 points to possible strategic adjustments in working capital or financial structure.

Quick Ratio

Enphase Energy Inc., quick ratio calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 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.
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.


Trend in Total Quick Assets
Over the observed period, total quick assets have generally demonstrated a strong upward trajectory. Starting from approximately 160 million USD in the first quarter of 2019, the figure increased steadily with some fluctuations, reaching a peak exceeding 2.3 billion USD in late 2023. Notable growth phases include the period from early 2020 to early 2021, where total quick assets approximately doubled, and a continuous increase throughout 2022 and into 2023. However, a slight decline is observed towards the last quarter of 2023, indicating a potential tightening of liquid asset holdings.
Current Liabilities Overview
Current liabilities reveal a rising trend with some significant variability. Initially recorded near 129 million USD in early 2019, liabilities increased moderately through 2019 and 2020 before sharply rising to over 534 million USD by the end of 2020. Following this spike, liabilities showed a general upward pattern through 2021 and 2022, peaking near 774 million USD in the third quarter of 2023 before declining appreciably in the final quarter of 2023. This fluctuation points to possible short-term debt management adjustments or changes in operational financing strategies.
Quick Ratio Analysis
The quick ratio exhibits considerable variation, reflecting changes in the company's liquidity position relative to its short-term obligations. Beginning at 1.24 in early 2019, the ratio improved substantially, peaking above 3.0 by mid-2020, indicative of ample liquid resources compared to immediate liabilities. A notable dip to around 1.61 occurred at the end of 2020, coinciding with a sharp rise in current liabilities. Subsequently, the ratio rebounded strongly to over 5.0 in early 2021, suggesting a temporary surge in liquid assets. Over the remaining periods, the ratio stabilized generally between 3.0 and 3.3, indicating a consistent strong liquidity reserve, with another rise to just above 4.0 in the last quarter of 2023, signifying enhanced short-term financial flexibility.
Overall Financial Position Insights
The data collectively indicate a robust growth in liquid assets outpacing the growth in current liabilities over the multi-year timeframe, contributing to consistently high quick ratios. This suggests prudent liquidity management and strong short-term financial health. Spikes and declines in liabilities and quick ratio demonstrate reactive adjustments to operational and market conditions. The maintenance of a quick ratio well above 1.0 throughout most periods provides a cushion against liquidity risk and confirms the company’s ability to meet short-term obligations efficiently.

Cash Ratio

Enphase Energy Inc., cash ratio calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 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.
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.


Total Cash Assets
The total cash assets demonstrated a notable upward trend from March 2019 through the end of 2023. Starting at approximately $78 million in the first quarter of 2019, the cash holdings surged significantly by mid-2020, reaching above $679 million by December 2020. This upward momentum continued in subsequent years, with cash assets peaking at nearly $1.78 billion by the end of 2023. The fluctuation during 2021, notably a dip in the final quarter, was followed by consistent growth throughout 2022 and early 2023, indicating strong liquidity management and cash accumulation strategies.
Current Liabilities
Current liabilities generally increased over the time period, reflecting a growing short-term obligation profile. Beginning at approximately $129 million in Q1 2019, liabilities rose steadily and accelerated sharply in late 2020 to over $534 million by December 2020. Following this spike, liabilities continued an upward trajectory through 2022 and 2023, reaching a peak close to $774 million in the third quarter of 2023 before declining to approximately $532 million by the end of the year. The sharp increase in late 2020 and sustained high levels thereafter suggest increased operational or financing activities impacting short-term obligations.
Cash Ratio
The cash ratio exhibited significant fluctuations but maintained a generally strong liquidity position throughout the period. Starting at 0.61 in March 2019, the ratio increased substantially, peaking at 4.32 in March 2021, indicating that cash and cash equivalents easily covered current liabilities during that period. Following this peak, the ratio declined gradually but stayed above 2.0 for most quarters through 2022 and into 2023, reflecting a comfortable buffer of cash relative to short-term liabilities. A notable recovery occurred in the last quarter of 2023, where the ratio rose to 3.18, suggesting an improvement in liquidity health likely due to the reduction in current liabilities alongside stable cash assets.
Overall Trends and Insights
The data indicates a robust liquidity position characterized by strong growth in cash assets that outpaced the rise in current liabilities for the majority of the observed timeframe. The sharp increase in current liabilities towards the end of 2020 may be associated with specific operational expansions or changes in financing structure, yet the concurrently high cash reserves and elevated cash ratio imply prudent liquidity management to mitigate risk. The gradual normalization of the cash ratio after early 2021 suggests a strategic balance between maintaining cash reserves and managing liabilities, with the final quarter of 2023 reflecting a favorable position with a higher cash ratio supported by a reduction in liabilities. These patterns collectively illustrate an overall strengthening of the company’s short-term financial stability and liquidity resilience through the period analyzed.