Envestnet Inc (ENV)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,877,250	2,112,160	2,241,180	2,144,290	1,801,880
Total stockholders’ equity	US$ in thousands	568,191	754,567	957,089	976,337	869,094
Financial leverage ratio		3.30	2.80	2.34	2.20	2.07

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,877,250K ÷ $568,191K
= 3.30

The financial leverage ratio of Envestnet Inc. has been steadily increasing over the past five years, indicating a trend of higher leverage in the company's capital structure. The ratio has grown from 2.07 in 2019 to 3.30 in 2023. This suggests that the company is relying more on debt financing compared to equity to fund its operations and investments.

An increasing financial leverage ratio can signal higher risk for Envestnet Inc. as higher debt levels can lead to increased interest expenses and financial obligations. However, it can also indicate that the company is leveraging its capital structure to potentially amplify returns for shareholders.

It would be important for stakeholders to closely monitor Envestnet Inc.'s financial leverage ratio and assess the company's ability to manage its debt levels effectively while maintaining profitability and growth.