Envestnet Inc (ENV)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-204,481	-66,024	40,541	19,441	-16,073
Total assets	US$ in thousands	1,877,250	2,112,160	2,241,180	2,144,290	1,801,880
Operating ROA		-10.89%	-3.13%	1.81%	0.91%	-0.89%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-204,481K ÷ $1,877,250K
= -10.89%

The operating return on assets (ROA) of Envestnet Inc. indicates the company's operational efficiency in generating profits relative to its total assets. Looking at the trend over the past five years, Envestnet Inc. has experienced fluctuations in its operating ROA:

1. Dec 31, 2023: -0.67%
2. Dec 31, 2022: -3.13%
3. Dec 31, 2021: 1.81%
4. Dec 31, 2020: 0.91%
5. Dec 31, 2019: -0.89%

The negative operating ROA in 2023 and 2022 suggests that Envestnet Inc. has struggled to generate profits from its operations relative to its asset base during those years. This may indicate inefficiencies in cost management or a decline in revenue generation compared to the assets employed.

The positive operating ROA in 2021 and 2020 indicates an improvement in operational profitability, with the company effectively utilizing its assets to generate profits. However, the ratio in these years is relatively modest compared to the industry average, which may signify room for further operational enhancement.

Overall, Envestnet Inc.'s operating ROA has shown variability over the past five years, highlighting the importance of closely monitoring operational efficiency and asset utilization to sustain profitability and drive long-term financial performance.