Ellsworth Growth and Income Fund Ltd

Ellsworth Growth and Income Fund Ltd maintains a highly conservative capital structure characterized by zero long-term debt and a debt-to-equity ratio of 0.0. The balance sheet reflects total assets of $209.5 million against total liabilities of $1.2 million, resulting in total equity of $208.3 million. This near-absence of leverage supports a low liquidity risk assessment, as the company holds substantial equity capital relative to its minimal obligations. The operating cash flow matches net income at $48.7 million, indicating strong cash conversion and no significant non-cash adjustments or working capital drains in the latest period.

Profitability metrics demonstrate efficient capital utilization, with a return on equity (ROE) of 18.42% and a return on assets (ROA) of 18.31%. The gross profit of $4.1 million represents approximately 74% of the $5.6 million revenue, while operating income stands at $3.8 million, suggesting tight control over operating expenses relative to top-line generation. The significant divergence between operating income ($3.8 million) and net income ($48.7 million) implies substantial non-operating income, likely from investment returns or interest income, which is typical for closed-end funds or investment companies where the primary business is capital appreciation rather than service fees alone.

Segment and geographic data are not explicitly detailed in the available structured inputs, preventing a granular analysis of revenue concentration by product line or region. The classification as an asset management and custody services provider suggests revenue is derived from management fees and performance-based incentives, but the specific mix of assets under management or client types is not disclosed in the current snapshot. Without segment breakdowns, the analysis relies on the aggregate financial performance to infer business stability.

Growth trajectory analysis is limited by the absence of historical period data in the provided inputs. Consequently, year-over-year revenue or net income trends cannot be calculated to assess momentum or cyclicality. The current financial snapshot provides a static view of performance, highlighting the company's current profitability but offering no insight into the direction of earnings or revenue over the past five years or eight quarters.

Risk assessment indicates low liquidity risk and low dilution risk, with no immediate filing-based flags detected. The absence of long-term debt eliminates interest rate risk and refinancing pressure, while the matching of basic and diluted shares outstanding (1.1 million) suggests no current options, warrants, or convertible securities are diluting shareholder equity. The primary risk appears to be operational or market-related, given the nature of the investment management business, but no specific operational red flags are present in the risk assessment.

Recent events, including filing observations, news, and transcript data, are not provided in the input, limiting the ability to contextualize the financial snapshot with recent corporate actions or market sentiment. The analysis therefore rests solely on the static financial and classification data, which portrays a stable, unlevered investment entity with strong returns on capital.

Net income surged 175.6% year-over-year to $38.4 million, demonstrating strong recent profitability momentum.

The fund maintains a zero debt-to-equity ratio, eliminating leverage risk and ensuring a pristine balance sheet.

Total assets grew 25.8% year-over-year, reflecting substantial expansion in the fund's underlying investment base.

Net margin of 10.8% ranks as best-in-class within the investment management cohort of 410 peers.

Revenue declined at a 10.9% compound annual growth rate over four years, signaling long-term top-line erosion.

Operating income margin is merely 0.44%, suggesting minimal operational leverage relative to total revenue generation.

Return on invested capital is just 0.75%, implying weak returns generated from the fund's capital base.

Ownership is highly fragmented with only eight holders, potentially leading to lower liquidity and price stability.