Envestnet Inc (ENV)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-204,481	-52,302	-53,949	-70,360	-66,024	-40,830	-25,649	17,005	40,541	53,275	50,796	43,873	19,441	21,096	9,312	-14,953	-16,073	-17,619	-14,096	6,166
Total assets	US$ in thousands	1,877,250	2,030,890	2,053,900	2,056,460	2,112,160	2,203,220	2,187,400	2,199,770	2,241,180	2,217,340	2,170,700	2,142,990	2,144,290	2,101,260	1,831,400	1,830,460	1,801,880	1,787,140	1,812,340	1,370,590
Operating ROA		-10.89%	-2.58%	-2.63%	-3.42%	-3.13%	-1.85%	-1.17%	0.77%	1.81%	2.40%	2.34%	2.05%	0.91%	1.00%	0.51%	-0.82%	-0.89%	-0.99%	-0.78%	0.45%

December 31, 2023 calculation

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

Envestnet Inc.'s operating return on assets (ROA) has shown a declining trend over the past eight quarters. In Q1 2022, the company reported a positive operating ROA of 0.77%, indicating that the company was generating earnings from its assets. However, since then, the operating ROA has deteriorated significantly, reaching a low of -3.42% in Q1 2023.

The negative operating ROA figures recorded in the subsequent quarters suggest that Envestnet Inc. has been struggling to generate operating income relative to its assets. This can be concerning as it may indicate inefficiencies in the company's operations or challenges in effectively utilizing its assets to generate profits.

It is essential for Envestnet Inc. to closely monitor and address the factors contributing to the decline in operating ROA to improve its financial performance and ensure sustainable profitability in the future.