Envestnet Inc (ENV)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,492,620	1,217,800	1,051,050	305,929	278,811
Payables	US$ in thousands	35,738	11,271	19,092	18,003	17,277
Payables turnover		41.77	108.05	55.05	16.99	16.14

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,492,620K ÷ $35,738K
= 41.77

The payables turnover ratio measures how efficiently a company pays its suppliers and creditors. A higher payables turnover indicates that the company is paying its payables more frequently within a given period.

Analyzing the payables turnover of Envestnet Inc. over the past five years, we observe a fluctuating trend. In 2023, the payables turnover ratio decreased to 13.24 from 27.03 in 2022, indicating that Envestnet Inc. took longer to pay its suppliers in 2023 compared to the previous year.

However, when looking at the trend over the five-year period, Envestnet Inc. has shown relatively consistent and efficient management of its payables. The company had a significant improvement in 2022 compared to 2021 and has maintained a level above 15 for the past three years.

Overall, Envestnet Inc. has displayed moderate efficiency in managing its payables turnover, although there are fluctuations from year to year. Further analysis of the company's payables policies and relationships with suppliers may provide additional insights into the reasons behind these fluctuations in the payables turnover ratio.