Envestnet Inc (ENV)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Envestnet Inc. over the past five years:

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers.
- Envestnet Inc.'s receivables turnover has been declining over the past five years, from 12.27 in 2019 to 9.25 in 2023.
- A decreasing trend could indicate potential issues with collection efficiency or changes in credit policies.

2. Payables Turnover:
- The payables turnover ratio reflects how quickly a company pays its suppliers.
- Envestnet Inc.'s payables turnover has fluctuated over the years, with a peak of 27.03 in 2022 and a lower ratio of 13.24 in 2023.
- A higher payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially leading to strained supplier relationships.

3. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales.
- Envestnet Inc. had a working capital turnover of 4.26 in 2021, which decreased to 3.71 in 2020.
- The decline in working capital turnover suggests that the company may be less efficient in using its working capital to generate revenue.

4. Inventory Turnover:
- The inventory turnover ratio indicates how quickly a company sells its inventory.
- Unfortunately, data for Envestnet Inc.'s inventory turnover is not available for the years provided, making it difficult to assess the company's inventory management efficiency.

Overall, Envestnet Inc. should closely monitor its activity ratios, specifically receivables turnover and working capital turnover, and take necessary actions to improve efficiency in managing receivables, payables, and working capital to optimize its operations and financial performance.

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Average number of days

Days of inventory on hand (DOH) information for Envestnet Inc. is not available in the provided data.

Days of sales outstanding (DSO) measures how long it takes for the company to collect revenue after a sale. Envestnet Inc. has experienced an increasing trend in DSO over the past five years, indicating that the company is taking longer to collect payments from customers. This could be a potential concern as it may impact cash flow and liquidity.

Number of days of payables signifies the average number of days it takes for the company to pay its suppliers. Envestnet Inc. shows a fluctuating trend in the number of days of payables over the past five years, with an apparent increase in 2023 compared to the previous year. This increase may indicate that the company is taking longer to settle its payables, which might impact relationships with suppliers but can also be a strategy to manage cash flow effectively.

Overall, analyzing the activity ratios of Envestnet Inc. suggests that the company has been experiencing challenges in managing its working capital efficiently, as evidenced by the increasing DSO and fluctuating number of days of payables. Further investigation into the underlying reasons for these trends is recommended to assess the company's financial health accurately.

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Long-term

The fixed asset turnover ratio for Envestnet Inc. has exhibited an upward trend over the past five years, increasing from 16.74 in 2019 to 25.83 in 2023. This indicates that the company has been able to generate more sales revenue relative to its investment in fixed assets.

On the other hand, the total asset turnover ratio has also shown an increasing trend, rising from 0.50 in 2019 to 0.66 in 2023. This suggests that Envestnet Inc. has been more efficient in utilizing its total assets to generate sales revenue over the years.

Overall, the improvement in both fixed asset turnover and total asset turnover ratios reflects positively on the company's operational efficiency and asset utilization, indicating that Envestnet Inc. has been leveraging its assets effectively to drive revenue growth.