Envestnet Inc (ENV)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — 30.16 40.90 34.09 — 20.93 — 16.18 — — — — — — — —
Receivables turnover 9.76 10.25 9.66 9.81 11.79 12.36 15.04 13.37 12.12 9.28 12.62 12.16 11.84 12.40 12.41 11.42 12.66 13.44 11.77 12.35
Payables turnover 41.52 76.63 43.93 126.13 106.80 61.54 57.78 58.97 54.97 18.57 17.50 12.66 16.87 10.25 18.62 22.16 11.06 46.36 30.61 12.22
Working capital turnover — — — — — — — 5.36 4.20 3.98 4.35 3.85 3.60 3.71 — — — — — 79.64

The receivables turnover ratio for Envestnet Inc. has been relatively stable over the eight quarters provided, ranging between 9.25 and 12.08. This suggests that the company efficiently collects its accounts receivable, with a higher turnover indicating a faster collection period.

In contrast, the payables turnover ratio has shown more variability, with values fluctuating significantly between 13.24 and 47.08. A higher payables turnover ratio typically indicates that the company is paying its suppliers more quickly.

The working capital turnover ratio is only available for Q1 2022, where it stands at 5.44. This ratio measures how effectively a company generates revenue from its working capital.

Overall, Envestnet Inc.'s activity ratios reflect different aspects of its operational efficiency, with the receivables turnover indicating strong collection practices, the payables turnover highlighting payment patterns, and the working capital turnover providing insight into working capital utilization.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — 12.10 8.93 10.71 — 17.44 — 22.55 — — — — — — — —
Days of sales outstanding (DSO) days 37.38 35.62 37.77 37.19 30.97 29.52 24.27 27.30 30.13 39.32 28.92 30.01 30.83 29.43 29.41 31.95 28.83 27.17 31.02 29.56
Number of days of payables days 8.79 4.76 8.31 2.89 3.42 5.93 6.32 6.19 6.64 19.65 20.86 28.82 21.63 35.61 19.60 16.47 33.00 7.87 11.93 29.86

Based on the provided data for Envestnet Inc.'s activity ratios:
1. Days of Inventory on Hand (DOH):
Unfortunately, data for Days of Inventory on Hand is missing for all quarters, making it impossible to evaluate the company's efficiency in managing its inventory levels.

2. Days of Sales Outstanding (DSO):
Envestnet's Days of Sales Outstanding (DSO) have shown an increasing trend over the quarters from 25.60 days in Q2 2022 to 39.45 days in Q4 2023. This indicates that the company is taking longer to collect payments from its customers, potentially impacting its cash flow and liquidity.

3. Number of Days of Payables:
The Number of Days of Payables for Envestnet fluctuates across quarters, ranging from 7.75 days in Q1 2023 to 27.58 days in Q4 2023. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which may provide some short-term liquidity benefits but could strain supplier relationships in the long run.

Overall, Envestnet's activity ratios reflect a concerning trend of increasing Days of Sales Outstanding, potentially pointing to challenges in managing receivables efficiently and impacting the company's cash conversion cycle. Additionally, the fluctuating Number of Days of Payables indicates varying payment practices that may impact working capital management.

Long-term

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
Fixed asset turnover 25.31 18.29 17.93 18.77 19.67 20.81 20.30 19.35 23.31 23.16 21.19 19.61 20.18 19.33 18.67 17.42 16.42 16.15 16.52 17.51
Total asset turnover 0.65 0.59 0.58 0.59 0.58 0.57 0.57 0.55 0.52 0.50 0.49 0.47 0.45 0.45 0.51 0.51 0.49 0.48 0.47 0.60

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Envestnet Inc. has shown a fluctuating trend in its fixed asset turnover ratio over the past eight quarters, with values ranging from 18.16 to 25.83. The ratio peaked in Q4 2023 at 25.83, indicating that the company generated $25.83 in sales for every dollar invested in fixed assets during that quarter. This suggests that Envestnet's fixed assets were effectively utilized to generate revenue.

On the other hand, the total asset turnover ratio measures how well a company is using its total assets to generate revenue. Envestnet Inc. exhibited a similar fluctuating pattern in its total asset turnover ratio over the same period, with values ranging from 0.56 to 0.66. The ratio reached its highest point in Q4 2023 at 0.66, signifying that the company generated $0.66 in sales for each dollar of total assets. This could imply that Envestnet effectively managed its total assets to generate revenue during that quarter.

Overall, Envestnet Inc. has shown variations in both its fixed asset turnover and total asset turnover ratios over the past eight quarters. The increasing trend in the fixed asset turnover ratio and the relatively stable total asset turnover ratio may indicate that the company is efficiently utilizing its assets to drive revenue growth. However, further analysis and comparison with industry benchmarks would provide more insights into the company's long-term activity efficiency.