Envestnet Inc (ENV)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,221,030 | 1,231,540 | 1,170,410 | 967,838 | 870,954 |
| Receivables | US$ in thousands | 124,999 | 104,211 | 96,601 | 81,748 | 69,734 |
| Receivables turnover | 9.77 | 11.82 | 12.12 | 11.84 | 12.49 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,221,030K ÷ $124,999K
= 9.77
The receivables turnover ratio for Envestnet Inc. has shown a declining trend over the past five years, decreasing from 12.27 in 2019 to 9.25 in 2023. This indicates that the company is collecting its accounts receivables less frequently in recent years. A lower receivables turnover ratio may suggest that the company is extending more lenient credit terms to its customers or facing difficulties in collecting payments promptly.
It is important for Envestnet Inc. to closely monitor its accounts receivable management and collection processes to improve the efficiency of cash inflows. A declining receivables turnover ratio could potentially lead to cash flow challenges and impact the company's liquidity position. Further analysis and comparison with industry benchmarks may provide insights into the company's credit policies and receivables management strategies.
Peer comparison
Dec 31, 2023