Energizer Holdings Inc (ENR)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.77 | 3.75 | 3.94 | 3.41 | 4.45 |
| Receivables turnover | 6.10 | 5.15 | 6.35 | 8.18 | 7.15 |
| Payables turnover | 5.73 | 6.57 | 9.22 | 5.45 | 6.01 |
| Working capital turnover | 4.37 | 3.39 | 3.24 | 5.60 | 4.36 |
Inventory turnover measures how efficiently a company manages its inventory. Energizer Holdings Inc's inventory turnover has been relatively stable over the past five years, ranging from 3.41 to 4.45. This indicates that the company is turning over its inventory approximately 3-4 times a year on average.
Receivables turnover reflects how quickly a company collects cash from its credit sales. Energizer's receivables turnover has shown some fluctuations but generally increased from 5.15 in 2023 to 6.10 in 2024. This suggests that the company is collecting its accounts receivable more efficiently in the most recent year.
Payables turnover measures how quickly a company pays its suppliers. Energizer's payables turnover has fluctuated over the years, with a notable decrease in 2022 followed by an increase in 2023. The ratio of 5.73 in 2024 indicates that the company is paying its suppliers approximately every two months.
Working capital turnover signifies how effectively a company is utilizing its working capital to generate revenue. Energizer's working capital turnover has varied over the years but has generally been above 3, indicating that the company is efficiently generating revenue relative to its working capital.
Overall, while there have been fluctuations in some activity ratios, Energizer Holdings Inc appears to be managing its inventory, receivables, payables, and working capital efficiently over the past five years.
Average number of days
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.74 | 97.35 | 92.73 | 107.16 | 82.07 |
| Days of sales outstanding (DSO) | days | 59.80 | 70.91 | 57.50 | 44.62 | 51.06 |
| Number of days of payables | days | 63.74 | 55.56 | 39.59 | 66.92 | 60.69 |
The Days of Inventory on Hand (DOH) for Energizer Holdings Inc have been relatively stable over the past five years, ranging from 82.07 days in 2020 to 107.16 days in 2021, with the most recent figure at 96.74 days as of September 30, 2024. This indicates that the company takes around 96.74 days to sell its inventory, which can be considered moderate.
The Days of Sales Outstanding (DSO) show a fluctuating trend, with the number of days it takes to collect accounts receivable varying from 44.62 days in 2021 to 70.91 days in 2023. As of September 30, 2024, the DSO stands at 59.80 days. This suggests that the company is collecting its receivables in around 59.80 days, which is on the higher end and indicates potential inefficiencies in collecting payments.
The Number of Days of Payables, reflecting the number of days it takes for a company to pay its suppliers, has also been inconsistent over the period, ranging from 39.59 days in 2022 to 66.92 days in 2021. As of September 30, 2024, the days of payables are at 63.74 days. This suggests that the company is taking around 63.74 days to pay its suppliers.
Overall, when considering all three activity ratios, Energizer Holdings Inc appears to have room for improvement in managing its working capital efficiently, particularly in terms of reducing the days it takes to collect receivables and extending the number of days it takes to pay suppliers. Monitoring and potentially optimizing these ratios can help enhance the company's liquidity and operational efficiency.
Long-term
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 8.62 | 7.67 | 7.99 | 7.21 | 6.96 |
| Total asset turnover | 0.66 | 0.62 | 0.63 | 0.55 | 0.43 |
The long-term activity ratios of Energizer Holdings Inc provide insights into how efficiently the company is utilizing its assets to generate sales revenue.
The fixed asset turnover ratio has been increasing over the past five years, indicating that the company is generating more sales revenue per dollar of fixed assets. This improvement suggests that Energizer Holdings has been able to enhance the productivity and efficiency of its fixed assets over time.
On the other hand, the total asset turnover ratio has also shown an increasing trend, which signifies that the company is generating more sales revenue relative to its total assets. This suggests an overall improvement in the company's asset utilization efficiency.
Overall, the increasing trend in both the fixed asset turnover and total asset turnover ratios indicates that Energizer Holdings Inc is effectively managing and utilizing its long-term assets to drive sales growth, which can positively impact the company's financial performance and long-term sustainability.