Envestnet Inc (ENV)

Return on assets (ROA)

		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
Total assets	US$ in thousands	1,877,250	2,112,160	2,241,180	2,144,290	1,801,880
ROA		-12.72%	-3.83%	0.59%	-0.15%	-0.93%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-238,724K ÷ $1,877,250K
= -12.72%

Based on the provided data, Envestnet Inc.'s return on assets (ROA) has displayed significant fluctuations over the past five years. The company's ROA was negative in four out of the five years, indicating that Envestnet struggled to generate earnings relative to its total assets during these periods.

The ROA deteriorated notably from 2019 to 2020, posting a negative figure of -0.93% in 2019 and worsening to -0.15% in 2020. However, in 2021, there was a slight improvement with a ROA of 0.59%, suggesting a modest ability to generate earnings from its assets.

The most recent data for 2023 shows a significant decline in ROA, dropping to -12.72%, indicating a substantial negative impact on Envestnet's profitability relative to its asset base. This trend raises concerns about Envestnet's operational efficiency and its ability to effectively utilize its assets to generate profits.

Overall, Envestnet's ROA performance reflects inconsistency and potential challenges in achieving satisfactory returns on its asset base over the past five years. Further analysis of the company's financial strategies and operational efficiency is warranted to understand the reasons behind these fluctuations and to identify opportunities for improvement.