Envestnet Inc (ENV)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 91,378 162,173 429,279 384,565 82,505
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 292,534 327,064 288,723 236,369 203,790
Cash ratio 0.31 0.50 1.49 1.63 0.40

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($91,378K + $—K) ÷ $292,534K
= 0.31

The cash ratio of Envestnet Inc. has exhibited fluctuations over the past five years. The ratio stood at 0.44 as of Dec 31, 2023, representing a decrease from the previous year's ratio of 0.60 on Dec 31, 2022. This decline may indicate a decrease in the company's ability to cover its short-term liabilities solely with cash and cash equivalents.

Comparing the current ratio to previous years, it is considerably lower than the ratios reported on Dec 31, 2021 (1.61) and Dec 31, 2020 (1.76). These higher ratios suggest that in those years, the company had a stronger ability to cover its short-term obligations with its available cash resources.

Furthermore, looking back to Dec 31, 2019, the cash ratio was 0.54, indicating a similar level of liquidity as the most recent period, but still higher than the Dec 31, 2023 figure of 0.44.

In conclusion, Envestnet Inc.'s cash ratio has experienced variability over the past five years, with the most recent ratio showing a decline that may raise concerns about the company's liquidity position. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to meet its short-term obligations using its cash holdings.


Peer comparison

Dec 31, 2023