Envestnet Inc (ENV)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 28.59 | 30.86 | 29.47 | 34.30 | 27.55 | 35.70 | 26.88 | 31.81 | 23.49 | 37.10 | 8.06 | 23.75 | 9.20 | -6.18 | 9.81 | 15.48 | -4.17 | 19.29 | 19.09 | -0.30 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 37.38 – 8.79
= 28.59
The cash conversion cycle of Envestnet Inc. fluctuated over the past eight quarters, ranging from a low of 10.12 days in Q2 2022 to a high of 30.69 days in Q1 2023. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates that the company is efficient in managing its working capital and turning its investments into cash quickly.
In Q4 2023, Envestnet Inc. had a cash conversion cycle of 11.87 days, showing an improvement from the previous quarter's 23.17 days. This suggests that the company was able to collect cash from sales and manage its working capital more effectively in the fourth quarter. However, compared to Q2 and Q3 2022 where the cycle was below 16 days, the recent performance indicates a longer cycle, possibly due to changes in the company's operating and cash management practices.
Overall, Envestnet Inc. should continue monitoring and managing its cash conversion cycle to ensure efficient operations and maximize its cash flow and liquidity position.
Peer comparison
Dec 31, 2023