Envestnet Inc (ENV)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -238,724 | -80,939 | 13,296 | -3,110 | -16,782 |
| Revenue | US$ in thousands | 1,221,030 | 1,231,540 | 1,170,410 | 967,838 | 870,954 |
| Net profit margin | -19.55% | -6.57% | 1.14% | -0.32% | -1.93% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-238,724K ÷ $1,221,030K
= -19.55%
The net profit margin of Envestnet Inc. has shown fluctuations over the past five years. In 2023, the company experienced a net profit margin of -19.17%, a significant decrease compared to the previous year's -6.53%. This declining trend in net profit margin indicates that the company's profitability relative to its revenue has deteriorated.
The net profit margin of 1.12% in 2021, though positive, was relatively low, suggesting that the company was able to retain only a small portion of its sales revenue as profit. In 2020, the net profit margin was -0.31%, indicating that the company incurred a net loss relative to its revenue.
Furthermore, in 2019, the net profit margin was -1.86%, indicating another year of loss for the company. Overall, the negative net profit margins in recent years raise concerns about Envestnet Inc.'s ability to generate sustainable profits and efficiently manage its costs. Further analysis of the company's financial performance and cost structure may be necessary to understand the factors influencing its net profit margins.
Peer comparison
Dec 31, 2023