Envestnet Inc (ENV)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	876,612	875,390	874,175	872,968	871,769	509,006	508,282	850,097	848,862	847,633	846,411	845,195	756,503	749,918	586,031	598,262	305,513	402,785	445,078	297,392
Total stockholders’ equity	US$ in thousands	568,191	743,796	722,513	725,614	754,567	940,758	933,165	951,449	957,089	944,435	917,117	914,141	976,337	954,673	875,795	865,569	869,094	862,263	855,251	622,719
Debt-to-equity ratio		1.54	1.18	1.21	1.20	1.16	0.54	0.54	0.89	0.89	0.90	0.92	0.92	0.77	0.79	0.67	0.69	0.35	0.47	0.52	0.48

December 31, 2023 calculation

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

Envestnet Inc.'s debt-to-equity ratio has shown some fluctuations over the past eight quarters. The ratio increased steadily from Q1 2022 to Q4 2023, peaking at 1.54 in the most recent quarter. This indicates that the company has been relying more on debt financing relative to equity during this period.

The ratio surpassing 1 suggests that Envestnet Inc. has more debt than equity, which can raise concerns about the company's financial leverage and solvency. However, it is crucial to consider industry norms and the company's specific circumstances when evaluating the implications of this ratio.

The trend of increasing debt-to-equity ratios may raise questions about Envestnet Inc.'s ability to effectively manage its debt levels and the associated risks. Investors and creditors might view higher debt-to-equity ratios as a red flag, signaling a potentially higher financial risk for the company.

It would be important for stakeholders to closely monitor Envestnet Inc.'s debt management strategies and assess whether the increasing trend in the debt-to-equity ratio aligns with the company's overall financial health and growth objectives.