Envestnet Inc (ENV)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	876,612	871,769	848,862	756,503	305,513
Total assets	US$ in thousands	1,877,250	2,112,160	2,241,180	2,144,290	1,801,880
Debt-to-assets ratio		0.47	0.41	0.38	0.35	0.17

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $876,612K ÷ $1,877,250K
= 0.47

The debt-to-assets ratio of Envestnet Inc. has been steadily increasing over the past five years, from 0.31 in 2019 to 0.47 in 2023. This suggests that the company has been relying more on debt to finance its assets. A rising debt-to-assets ratio can indicate a higher level of financial risk as it implies that a larger portion of the company's assets is funded by debt rather than equity.

The upward trend in this ratio could be due to various reasons, such as the company taking on more debt to fund expansion, acquisitions, or other growth opportunities. While using debt can be beneficial in terms of leveraging investment and potentially increasing returns, it also exposes the company to higher interest expenses and repayment obligations.

Investors and creditors may view the increasing debt-to-assets ratio as a signal of potential financial stress or increased vulnerability to economic downturns. It is crucial for Envestnet Inc. to carefully manage its debt levels and ensure that its operations can generate sufficient cash flows to meet its debt obligations.

Overall, the trend of the debt-to-assets ratio for Envestnet Inc. indicates a shift towards a more leveraged financial structure, which could impact the company's risk profile and financial flexibility moving forward.