Envestnet Inc (ENV)

Liquidity 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
Current ratio 0.90 0.75 0.73 0.75 0.95 0.64 0.77 1.82 1.96 2.04 1.98 2.14 2.14 2.13 0.98 0.92 0.90 0.46 0.54 1.03
Quick ratio 0.74 0.59 0.59 0.59 0.81 0.56 0.69 1.64 1.82 1.91 1.83 1.98 1.97 1.94 0.80 0.74 0.75 0.37 0.42 0.92
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

Envestnet Inc.'s liquidity ratios show fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged from 0.64 to 0.93. The trend indicates that Envestnet's current assets have been relatively stable compared to its current liabilities, with a low of 0.64 in Q3 2022 and a high of 0.93 in Q4 2022.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventories from current assets, mirrors the current ratio trends closely. Envestnet's quick ratio also ranges from 0.64 to 0.93 over the same period.

The cash ratio, representing the most conservative liquidity metric by only considering cash and cash equivalents against current liabilities, displays similar fluctuations. Envestnet's ability to cover its short-term liabilities with cash has ranged from 0.30 to 0.62.

Overall, Envestnet's liquidity ratios indicate some variability in its ability to meet short-term obligations over the past two years. The company may need to manage its liquidity position carefully to ensure it has sufficient resources to meet its short-term financial commitments.

Additional liquidity measure

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 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

The cash conversion cycle of Envestnet Inc. has been fluctuating over the past eight quarters. The company's performance in managing its cash flows and working capital efficiency can be analyzed through this metric.

In Q4 2023, the cash conversion cycle was 11.87 days, indicating that the company was able to efficiently convert its resources into cash within a relatively short period. This was a significant improvement compared to Q3 2023, where the cycle was 23.17 days, suggesting a longer cash conversion process during that quarter.

Looking back further, Q2 2023 saw a cash conversion cycle of 16.28 days, which was followed by a significant increase to 30.69 days in Q1 2023. This implies that the company faced challenges in managing its working capital effectively during that period.

Comparing the recent quarters to the same quarters in the previous year, there have been variations in the cash conversion cycle. For instance, Q4 2023's cycle of 11.87 days was lower than Q4 2022's cycle of 18.79 days, indicating an improvement in cash conversion efficiency.

Overall, Envestnet Inc. should focus on reducing its cash conversion cycle to ensure a more efficient utilization of its resources and enhance its overall financial performance. Regular monitoring and management of working capital components will be crucial for maintaining a healthier cash conversion cycle in the future.