Envestnet Inc (ENV)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	568,191	754,567	957,089	976,337	869,094
Debt-to-equity ratio		1.54	1.16	0.89	0.77	0.35

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $876,612K ÷ $568,191K
= 1.54

The debt-to-equity ratio of Envestnet Inc. has shown an increasing trend over the past five years. The ratio rose from 0.65 in 2019 to 1.54 in 2023. This indicates that the company has been relying more on debt financing compared to equity financing. A higher debt-to-equity ratio suggests that the company has a higher level of financial leverage, which could potentially increase financial risk.

The increase in the debt-to-equity ratio could be attributed to various factors such as the company's strategy to fund growth through debt, acquisition activities, or a decrease in shareholder equity. It is important to note that a high debt-to-equity ratio may signal that the company is more vulnerable to economic downturns or fluctuations in interest rates.

Investors and stakeholders should closely monitor Envestnet Inc.'s debt levels and assess the company's ability to service its debt obligations in the long term. Additionally, management should strive to strike a balance between debt and equity financing to maintain a healthy capital structure and mitigate excessive financial risk.