Envestnet Inc (ENV)

Based on the solvency ratios of Envestnet Inc. over the past five years, we can observe the following trends:

1. Debt-to-assets ratio: This ratio has been increasing steadily from 0.31 in 2019 to 0.47 in 2023, indicating that a larger portion of Envestnet's assets is funded by debt.

2. Debt-to-capital ratio: Envestnet's debt-to-capital ratio has also been on the rise, increasing from 0.39 in 2019 to 0.61 in 2023. This suggests that the company is relying more heavily on debt financing relative to its total capital structure.

3. Debt-to-equity ratio: The debt-to-equity ratio shows a significant upward trend from 0.65 in 2019 to 1.54 in 2023, demonstrating a substantial increase in Envestnet's financial leverage and potential borrowing risks.

4. Financial leverage ratio: Envestnet's financial leverage ratio has also been increasing over the years, indicating that the company is utilizing more debt to finance its operations and investments. The ratio has grown from 2.07 in 2019 to 3.30 in 2023.

Overall, the solvency ratios of Envestnet Inc. highlight an increasing reliance on debt financing to support its operations and growth. Investors and creditors may closely monitor these ratios to assess the company's ability to meet its debt obligations and manage its leverage effectively.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a better ability to meet interest payment obligations.

Analyzing Envestnet Inc.'s interest coverage over the past five years, we observe a fluctuating trend. In 2023, the interest coverage ratio was negative at -1.06, indicating that the company's operating income was insufficient to cover its interest expenses. This is a concerning sign as it suggests potential difficulties in meeting debt obligations from operating earnings.

Similarly, in 2022, the interest coverage ratio was at -5.22, indicating a substantial deterioration in the company's ability to cover interest expenses. This trend continued from the previous year, where the ratio was negative at -0.55.

On a more positive note, in 2021, the interest coverage ratio improved to 2.52, showing that Envestnet had generated sufficient operating income to cover its interest expenses. However, in 2020 and 2019, the ratios were relatively low at 0.64 and -0.55, respectively, indicating a weaker ability to cover interest payments with operating income.

Overall, Envestnet's interest coverage has shown inconsistency, with significant fluctuations over the past five years. Investors and creditors should closely monitor future financial performance to ensure the company's ability to meet its debt obligations.