Envestnet Inc (ENV)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	568,191	754,567	957,089	976,337	869,094
ROE		-42.01%	-10.73%	1.39%	-0.32%	-1.93%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-238,724K ÷ $568,191K
= -42.01%

The return on equity (ROE) of Envestnet Inc. has displayed a downward trend over the past five years, ranging from -42.01% at the end of 2023 to -1.93% at the end of 2019.

The negative ROE values indicate that the company's net income is insufficient to generate a positive return for its shareholders relative to its equity base. The ROE of -42.01% in 2023 reflects a significant decrease from the previous year's -10.73%, indicating a substantial decline in the company's ability to generate profits from shareholders' equity.

The declining trend in ROE could be a result of various factors such as inefficient cost management, decreasing profitability, or inefficient utilization of assets. It suggests that the company might be facing challenges in generating profits from the capital invested by its shareholders.

Overall, Envestnet Inc.'s decreasing ROE trend warrants further investigation into the company's financial performance, operational efficiency, and strategic initiatives to address the declining profitability and enhance shareholder value in the future.