Envestnet Inc (ENV)

Solvency ratios

	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
Debt-to-assets ratio	0.47	0.43	0.43	0.42	0.41	0.23	0.23	0.39	0.38	0.38	0.39	0.39	0.35	0.36	0.32	0.33	0.17	0.23	0.25	0.22
Debt-to-capital ratio	0.61	0.54	0.55	0.55	0.54	0.35	0.35	0.47	0.47	0.47	0.48	0.48	0.44	0.44	0.40	0.41	0.26	0.32	0.34	0.32
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
Financial leverage ratio	3.30	2.73	2.84	2.83	2.80	2.34	2.34	2.31	2.34	2.35	2.37	2.34	2.20	2.20	2.09	2.11	2.07	2.07	2.12	2.20

The solvency ratios of Envestnet Inc. provide insights into the company's ability to meet its long-term financial obligations.

Debt-to-assets ratio: Envestnet's debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.43 and 0.47. This indicates that around 43% to 47% of the company's total assets are financed by debt, which suggests a moderate level of leverage.

Debt-to-capital ratio: Envestnet's debt-to-capital ratio has also shown consistency, fluctuating between 0.48 and 0.61. This ratio indicates what percentage of the company's capital comes from debt, which has ranged from 48% to 61%. The increasing trend in recent quarters may signify a higher reliance on debt financing.

Debt-to-equity ratio: Envestnet's debt-to-equity ratio has displayed an upward trend from 0.89 in Q1 2022 to 1.54 in Q4 2023. This indicates that the company's level of debt relative to equity has been increasing. A higher ratio signifies higher financial risk as debt plays a larger role in the company's capital structure.

Financial leverage ratio: Envestnet's financial leverage ratio has also been on an upward trajectory, increasing from 2.31 in Q1 2022 to 3.30 in Q4 2023. This indicates that the company's debt level has been rising relative to its equity, resulting in higher financial leverage.

Overall, Envestnet's solvency ratios suggest a moderate to high level of leverage and increasing reliance on debt financing over the quarters, which may increase financial risk and the company's vulnerability to economic downturns or interest rate fluctuations.

Coverage ratios

	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
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

Based on the data provided for Envestnet Inc.'s interest coverage ratio over the past eight quarters, we observe a concerning trend. The interest coverage ratio has been consistently below 1, indicating that the company's operating income is insufficient to cover its interest expenses. This raises red flags about Envestnet Inc.'s ability to meet its interest obligations from its operations alone.

Furthermore, the negative values of the interest coverage ratio in several quarters, such as Q4 2023, Q3 2023, Q2 2023, and Q1 2023, indicate significant financial distress. Envestnet Inc. may be relying heavily on external financing or alternative sources to service its debt obligations. The declining trend in the interest coverage ratio from Q1 2022 to Q4 2023 also suggests deteriorating financial health and possible liquidity challenges.

Overall, Envestnet Inc.'s consistently low and negative interest coverage ratios raise concerns about its financial stability and ability to manage its debt burden effectively. Investors, creditors, and stakeholders should closely monitor the company's financial performance and debt management strategies to assess the risks associated with investing or doing business with Envestnet Inc.