ENPHCAUTIOUS

ENPH Debt-to-Equity Ratio Analysis

0.48x

Updated 441h ago·SEC filings & market data

Key Takeaway

The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder funds; a 0.48x value means ENPH has $0.48 of debt for every $1 of equity, indicating modest leverage.

Sector Performance

35th percentile

ENPH

0.48x

Sector Median

0.74x

Sector Avg

2.51x

Prior Period

0.52x(Jul 2026)

↑ Improving

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Deep Analysis

The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder funds; a 0.48x value means ENPH has $0.48 of debt for every $1 of equity, indicating modest leverage.

That level is below the sector median of 0.74x, placing ENPH in the 34th percentile among peers, so roughly two-thirds of comparable companies carry more debt. The year-over-year change is not available, but the quarter-over-quarter change shows a 7.7% decline, moving from 0.52x to the current 0.48x. With the historical record limited to these two points, the downward trajectory implies the company is reducing its debt load, though the broader 8-quarter trend remains unknown. A low and improving debt ratio lowers financial distress risk, but it does not address other factors like profitability or growth prospects. This metric contradicts the overall CAUTIOUS verdict, since the balance sheet appears less risky than the sector norm and is strengthening quarter to quarter.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about ENPH?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

Who are ENPH's closest peers by Debt-to-Equity Ratio?

The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.