Envestnet Inc (ENV)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	91,378	43,211	59,019	52,664	162,173	241,330	338,115	359,614	429,279	393,799	369,524	371,977	384,565	362,918	92,244	68,601	82,505	71,632	77,717	245,735
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	292,534	270,245	308,904	297,652	327,064	616,268	610,036	274,807	288,723	269,405	247,814	228,921	236,369	226,320	209,285	202,918	203,790	366,317	353,474	338,726
Cash ratio		0.31	0.16	0.19	0.18	0.50	0.39	0.55	1.31	1.49	1.46	1.49	1.62	1.63	1.60	0.44	0.34	0.40	0.20	0.22	0.73

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 shown some volatility over the past eight quarters, ranging from a low of 0.30 in Q3 2023 to a high of 1.48 in Q1 2022. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

A cash ratio below 1 indicates that the company may have difficulties meeting its short-term obligations if they all came due at once. Envestnet's cash ratio has been consistently below 1, indicating that the company may need to rely on other sources of liquidity, such as short-term investments or lines of credit, to meet its short-term obligations.

The downward trend observed in the cash ratio from Q1 2022 to Q3 2023 may raise concerns about the company's liquidity position. Investors and creditors may monitor Envestnet's cash management closely to ensure that the company can effectively manage its short-term liquidity needs. It is essential for the company to maintain a healthy cash position and manage its working capital effectively to meet its financial obligations in the future.