Envestnet Inc (ENV)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-204,481	-52,302	-53,949	-70,360	-66,024	-40,830	-25,649	17,005	40,541	53,275	50,796	43,873	19,441	21,096	9,312	-14,953	-16,073	-17,619	-14,096	6,166
Interest expense (ttm)	US$ in thousands	25,138	22,972	20,879	18,310	16,843	17,556	17,556	17,569	16,931	16,493	21,649	26,067	31,504	33,143	34,260	35,076	32,304	39,720	36,125	29,087
Interest coverage		-8.13	-2.28	-2.58	-3.84	-3.92	-2.33	-1.46	0.97	2.39	3.23	2.35	1.68	0.62	0.64	0.27	-0.43	-0.50	-0.44	-0.39	0.21

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-204,481K ÷ $25,138K
= -8.13

The interest coverage ratio for Envestnet Inc. has been fluctuating over the past eight quarters, ranging from -5.56 in Q1 2023 to 1.06 in Q1 2022. The negative values indicate that the company's operating income was insufficient to cover its interest expenses during those quarters. This raises concerns about the company's ability to meet its debt obligations. The trend of declining interest coverage ratios from Q1 2022 to Q1 2023 suggests a worsening financial position in terms of servicing its debt. Further analysis is required to understand the underlying reasons for this deteriorating trend and to assess the financial risk associated with Envestnet's current debt levels.