Envestnet Inc (ENV)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	-225,947	-73,878	20,963	-8,511	-47,675
Revenue	US$ in thousands	1,221,030	1,231,540	1,170,410	967,838	870,954
Pretax margin		-18.50%	-6.00%	1.79%	-0.88%	-5.47%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $-225,947K ÷ $1,221,030K
= -18.50%

Envestnet Inc.'s pretax margin has fluctuated over the past five years. The company experienced a significant decrease in pretax margin from 1.72% in 2021 to -18.71% in 2023, indicating declining profitability before taxes. This negative trend is concerning as it suggests that Envestnet's expenses have been outpacing its revenues in recent years. Additionally, the pretax margin was also negative in 2020 and 2019, further indicating financial challenges. Overall, Envestnet's pretax margin performance raises potential issues regarding cost management and operational efficiency that require further scrutiny.