Envestnet Inc (ENV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -22.24% | 1.12% | 10.20% | 68.39% | 67.99% |
| Operating profit margin | -16.75% | -5.36% | 3.46% | 2.01% | -1.85% |
| Pretax margin | -18.50% | -6.00% | 1.79% | -0.88% | -5.47% |
| Net profit margin | -19.55% | -6.57% | 1.14% | -0.32% | -1.93% |
Envestnet Inc.'s gross profit margin has shown a decreasing trend from 69.03% in 2019 to 62.02% in 2023. This indicates the company's ability to generate revenue after accounting for the cost of goods sold has declined over the years.
The operating profit margin has been fluctuating, with negative margins in 2022 and 2023. This suggests that Envestnet Inc. has been experiencing challenges in controlling operating expenses, resulting in operating losses in those years.
The pretax margin has been negative for the past three years, indicating that the company's profitability before taxes has been significantly affected by expenses and other factors. The largest negative margin was in 2023 at -18.71%, reflecting a substantial decline in profitability.
Similarly, the net profit margin has also been negative for the past three years, with the largest decline recorded in 2023 at -19.17%. This indicates that Envestnet Inc. has been struggling to maintain profitability after accounting for all expenses, including taxes.
In conclusion, the profitability ratios of Envestnet Inc. have shown a concerning downward trend, with declining margins across gross profit, operating profit, pretax profit, and net profit margins. The company may need to focus on improving cost management and revenue generation to enhance profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -10.89% | -3.13% | 1.81% | 0.91% | -0.89% |
| Return on assets (ROA) | -12.72% | -3.83% | 0.59% | -0.15% | -0.93% |
| Return on total capital | -13.90% | -3.51% | 2.10% | 1.33% | -1.29% |
| Return on equity (ROE) | -42.01% | -10.73% | 1.39% | -0.32% | -1.93% |
Envestnet Inc.'s profitability ratios indicate fluctuating performance over the past five years.
1. Operating Return on Assets (Operating ROA)
- The operating ROA has been negative in 2022 and 2023, indicating that Envestnet Inc. has been unable to generate positive operating income relative to its total assets during these years.
2. Return on Assets (ROA)
- The ROA has been negative for the past two years (2022 and 2023), suggesting that Envestnet Inc. has experienced difficulties in generating profits from its assets.
3. Return on Total Capital
- The return on total capital has also been negative in 2022 and 2023, further highlighting Envestnet Inc.'s challenges in generating returns from its total invested capital.
4. Return on Equity (ROE)
- The ROE has shown significant fluctuations, with a substantial decline in 2023 resulting in a negative ROE of -42.01%. This indicates that Envestnet Inc. has been generating a loss relative to shareholders' equity during this period.
In summary, Envestnet Inc.'s profitability ratios reveal a challenging financial performance, characterized by negative returns and limited profitability in recent years. Further analysis and strategic actions may be required to improve the company's profitability and financial health.