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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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), 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 financial data reveals several notable trends across key turnover ratios over the reported periods.
- Net Fixed Asset Turnover
- This ratio was first reported starting in the quarter ending March 31, 2020, at a high level of 21.58. It generally exhibited a declining trend over subsequent quarters, falling to 13.62 by the last reported quarter ending December 31, 2023. There were minor fluctuations, including a temporary increase reaching 21.99 in the third quarter of 2022, but the overall direction was downward, suggesting a gradual reduction in asset turnover efficiency with respect to net fixed assets over time.
- Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
- Similarly starting in the quarter ending March 31, 2020, this ratio showed a lower initial value than the standard net fixed asset turnover at 15.99. It also trended downward overall to 12.18 by December 31, 2023. The ratio experienced some recovery phases, particularly evident with increases to 18.37 in September 2022 before declining again. The fluctuations imply varying impacts of operating leases and right-of-use assets on the asset turnover metric, but the general trend suggests decreasing efficiency.
- Total Asset Turnover
- This ratio began reporting the quarter ending March 31, 2020, at 0.88 and showed a general decline reaching a low point of 0.40 in the second quarter of 2021. Following this trough, a recovery trend ensued, increasing to 0.81 by the first quarter of 2023, followed by a slight decrease to 0.68 at the year end. The pattern suggests that after an initial reduction in the ability to generate revenue from total assets, operational efficiency improved but remained somewhat volatile towards the end of the period.
- Equity Turnover
- Equity turnover displayed significant variability. Starting at 2.29 in the quarter ending March 31, 2020, it remained fairly stable until the end of 2020 before sharply rising to its highest point of 4.60 in the second quarter of 2021. Following this peak, the ratio steadily decreased throughout 2022 and 2023, settling at 2.33 by December 31, 2023. The sharp spike in 2021 suggests a temporary surge in revenue generation relative to equity, possibly due to operational or financial factors. The subsequent decline to levels near the initial starting point indicates a reversion to more normalized turnover activity.
Overall, the financial ratios reflect a period of initial high efficiency in asset utilization and equity revenue generation, followed by general declines in fixed asset turnover ratios and fluctuations in total asset and equity turnover. The observed trends could reflect changes in asset base composition, lease accounting, operational efficiency, or market conditions impacting revenue generation capabilities relative to assets and equity throughout the periods analyzed.
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 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. | ||||||||||||||||||||||||||
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
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 show an overall upward trend from March 2019 through December 2022, increasing from approximately $100 million to over $724 million at the end of 2022. The revenues more than doubled in this period, indicating strong sales growth. After peaking in December 2022 at around $725 million, revenues exhibit a noticeable decline through the quarters of 2023, dropping to about $303 million by December 2023. This suggests a significant reduction in sales in the most recent year.
- Property and Equipment, Net
- The net value of property and equipment shows consistent growth over the entire period, increasing steadily from approximately $20 million in March 2019 to about $173 million by December 2023. This indicates continuous investment in fixed assets throughout the five-year span. While growth is steady, there is a slight dip in December 2023 from the previous quarter.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio displays a high level around the end of 2019, with values exceeding 20 and reaching as high as 23.93 in mid-2020. After that peak, there is a gradual decline in the ratio over time, falling from over 20 in early 2021 to about 13.62 by December 2023. This decreasing ratio implies that revenues generated per dollar of fixed assets have diminished, indicating possible underutilization of the asset base or that asset growth is outpacing revenue growth, especially noticeable in the later period of 2023.
- Overall Observations
- The company experienced substantial revenue growth until late 2022, accompanied by steady investment in fixed assets. However, starting in 2023, revenues contracted sharply while the fixed asset base remained elevated, resulting in a marked decrease in the fixed asset turnover ratio. This pattern may point to operational challenges or market conditions affecting sales efficiency relative to the asset investment. The slowing revenue coupled with sustained asset investments suggests a period of reduced asset productivity and warrants closer examination of operational and market dynamics during 2023.
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 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 | ||||||||||||||||||||||||||
| 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), 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
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.
- Net Revenues
-
Net revenues demonstrated a general growth trend from March 31, 2019, through December 31, 2022. Starting at $100,150 thousand in the first quarter of 2019, revenues steadily increased, reaching a peak of $724,652 thousand by December 31, 2022. This represents a significant expansion over the period, with particularly strong quarterly gains observed throughout 2021 and 2022.
Notably, revenues peaked in the fourth quarter of 2022, followed by a marked decline in 2023. The first quarter of 2023 saw revenues of $726,016 thousand, slightly above the fourth quarter of 2022, but this was followed by a downward trend, with revenues dropping sharply to $302,570 thousand by the end of 2023. This sharp decline in the latter part of 2023 suggests a possible contraction or seasonal adjustment affecting the company’s sales performance.
- Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
-
The net value of property and equipment showed a consistent increase throughout the period. From $28,141 thousand as of March 31, 2019, this asset base grew steadily each quarter, reaching a high of $194,169 thousand by the third quarter of 2023. This upward trajectory indicates continued investment in fixed assets and operating leases, reflecting company expansion or capacity enhancement.
However, in the fourth quarter of 2023, the net property and equipment value slightly decreased to $188,131 thousand. Although this reduction is modest relative to the overall trend, it may indicate asset disposals, depreciation impacts, or adjustments in leasing arrangements.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
The net fixed asset turnover ratio, first available from December 31, 2019, showed a generally high level of efficiency in utilizing fixed assets to generate sales. Initially, the ratio declined from 15.99 at the end of 2019 to a low point of 12.38 in the second quarter of 2021, suggesting that the growth in fixed assets outpaced revenue growth during this interval.
Thereafter, the turnover ratio improved steadily, peaking at 18.37 in the second quarter of 2022, indicating enhanced asset utilization. This improvement corresponds with the rapid increase in revenues observed during 2021 and early 2022.
Following this peak, the turnover ratio exhibited a declining trend in the last two quarters of 2022 and throughout 2023, falling to 12.18 by the end of 2023. This decline corresponds temporally with the sharp revenue decrease in 2023, implying that fixed asset levels remained comparatively high while revenue generation diminished, leading to less efficient asset use.
- Overall Insights
-
The data reflects a period of robust growth in net revenues and asset accumulation from 2019 through 2022, accompanied by fluctuations in asset turnover efficiency. The initial improvement followed by declines in asset turnover ratio suggest periods of both efficient and less efficient asset use relative to sales.
The abrupt revenue decrease and corresponding reduction in fixed asset turnover in 2023 are notable and may point to operational challenges, market conditions, or strategic shifts affecting the company’s business. Despite a slight decline in property and equipment at the end of 2023, the overall asset base remains substantially larger than at the start of the period, implying significant capital commitment despite recent revenue contraction.
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 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. | ||||||||||||||||||||||||||
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
Total asset turnover
= (Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's performance over the observed quarters.
- Net Revenues
- Net revenues demonstrated a generally upward trajectory from March 2019 to December 2022, rising from approximately $100 million to a peak near $725 million. A significant increase can be observed between June 2021 and December 2022, indicating strong growth momentum during this period. However, from December 2022 onwards, revenues declined sharply, falling to approximately $303 million by December 2023. This drop highlights potential market challenges or operational issues that emerged in the latest quarters.
- Total Assets
- Total assets expanded substantially over the timeframe, starting at about $319 million in March 2019 and increasing to over $3.5 billion by December 2023. The growth was particularly pronounced between December 2019 and March 2021, where assets nearly tripled, suggesting significant investments or acquisitions. After this period of rapid growth, asset levels stabilized somewhat but continued to grow steadily until reaching a peak in September 2023, followed by a slight reduction by the end of 2023.
- Total Asset Turnover
- Total asset turnover, which measures the efficiency of asset use in generating revenues, showed a mixed pattern. Starting around 0.88 in late 2019, the ratio declined to a low near 0.4 in the first half of 2021, indicating a period of reduced efficiency or perhaps asset accumulation exceeding revenue growth. From mid-2021 onward, the turnover ratio gradually improved and peaked at 0.81 by September 2023 before slipping somewhat in the final quarter. This suggests efforts to enhance asset utilization had some success but faced headwinds toward the end of the period.
Overall, the financial data indicate a phase of significant expansion in both revenues and asset base, followed by a recent contraction in revenues which, combined with sustained high asset levels, has resulted in a moderate decline in asset turnover efficiency. This scenario underscores the importance of investigating factors behind the revenue downturn and evaluating asset deployment strategies to restore or improve financial performance in upcoming periods.
Equity Turnover
Enphase Energy Inc., equity turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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), 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
Equity turnover
= (Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023)
÷ Stockholders’ equity (deficit)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues demonstrate a general upward trend from March 2019 through December 2022, increasing from approximately $100 million to a peak of roughly $725 million. This growth is particularly strong between March 2021 and December 2022, with quarterly revenues rising consistently and reaching their highest levels during this period.
- However, starting from March 2023, net revenues exhibit a significant decline, dropping from around $726 million to approximately $303 million by the end of the year. This downturn suggests a notable disruption or shift negatively impacting revenue generation in the latest quarters.
- Stockholders’ Equity (Deficit)
- Stockholders' equity shows a substantial increase from about $14 million in March 2019 to over $825 million by December 2022, indicating a strong build-up of shareholder value over these years. This increase is steady with some volatility, including a notable dip between December 2021 and March 2022, where equity dropped from around $647 million to $331 million.
- After the dip, equity recovers and continues to grow, peaking near $1 billion by September 2023. In the last quarter reported, there is a mild reduction in equity, which mirrors the decrease observed in net revenues.
- Equity Turnover Ratio
- The equity turnover ratio, available from March 2020, indicates fluctuating efficiency in the use of equity to generate revenues. Initially, the ratio stays around 2.3 but then declines to a low of 1.6 by December 2020, suggesting less efficient use of equity during this period.
- Following this decline, the ratio rises sharply, peaking at 4.6 in June 2022, implying increased effectiveness in generating revenues from equity at that time. After June 2022, the equity turnover ratio gradually decreases but remains above 2.3 by the end of 2023, suggesting a moderate but sustained efficiency level.
- Overall Analysis
- The company experienced robust growth in both net revenues and stockholders' equity from 2019 through 2022, signaling expansion and value creation. The equity turnover ratio's peak in mid-2022 also reflects a period of heightened operational efficiency.
- Nevertheless, the sharp decline in net revenues starting from the first quarter of 2023, combined with a slight decrease in equity, points to emerging challenges. This recent downturn may signal changes in business conditions requiring further investigation to understand underlying causes and to manage potential risks.