Envestnet Inc (ENV)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	-200,809	-57,035	37,894	22,993	-15,155
Long-term debt	US$ in thousands	876,612	871,769	848,862	756,503	305,513
Total stockholders’ equity	US$ in thousands	568,191	754,567	957,089	976,337	869,094
Return on total capital		-13.90%	-3.51%	2.10%	1.33%	-1.29%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-200,809K ÷ ($876,612K + $568,191K)
= -13.90%

Envestnet Inc.'s return on total capital has fluctuated over the past five years. In 2023, the return on total capital was -0.88%, indicating a negative return on the total capital invested in the company. This was an improvement from the previous year where the return was -3.95%, but it remained in negative territory.

In 2021, the return on total capital improved significantly to 2.24%, indicating a better return compared to the previous years. However, this improvement was not sustained in 2022 when the return decreased to 1.12%.

The negative returns in 2019 (-1.12%) and 2020 (1.12%) suggest that Envestnet Inc. has faced challenges in generating returns on the capital deployed in the business during those years.

Overall, Envestnet Inc.'s return on total capital has been mixed over the past five years, with periods of both positive and negative returns. This indicates that the company's efficiency in generating returns on total capital has varied, and further analysis of the underlying factors driving these fluctuations would be necessary to assess the company's financial performance accurately.