Envestnet Inc (ENV)

Return on assets (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
Net income (ttm)	US$ in thousands	-238,724	-92,058	-106,439	-108,308	-80,939	-49,543	-30,513	-15,509	13,296	25,645	15,815	19,172	-3,110	-6,760	-11,750	-5,933	-16,782	-20,149	-14,115	-20,534
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
ROA		-12.72%	-4.53%	-5.18%	-5.27%	-3.83%	-2.25%	-1.39%	-0.71%	0.59%	1.16%	0.73%	0.89%	-0.15%	-0.32%	-0.64%	-0.32%	-0.93%	-1.13%	-0.78%	-1.50%

December 31, 2023 calculation

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

The return on assets (ROA) of Envestnet Inc. has shown a declining trend over the past eight quarters. In Q4 2023, the ROA was at -12.72%, indicating that the company generated a net loss relative to its total assets. This significant decrease in ROA from the previous quarter may raise concerns about the company's profitability and its ability to effectively utilize its assets to generate earnings.

Overall, Envestnet's ROA has been negative for the last five consecutive quarters, reflecting challenges in generating profits relative to its asset base. The average ROA over this period was approximately -4.74%, suggesting that the company has struggled to efficiently convert assets into earnings. It is essential for the company to address these issues and improve its ROA to ensure sustainable profitability and value creation for its stakeholders.