Energizer Holdings Inc (ENR)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.75 | 3.94 | 3.41 | 4.45 | 4.78 |
| Receivables turnover | 5.15 | 6.35 | 8.18 | 7.15 | 6.12 |
| Payables turnover | 6.57 | 9.22 | 5.45 | 6.01 | 7.50 |
| Working capital turnover | 3.39 | 3.24 | 5.60 | 4.36 | 2.34 |
The activity ratios of Energizer Holdings Inc indicate the efficiency with which the company manages its inventory, receivables, payables, and working capital.
Firstly, the inventory turnover ratio measures the number of times a company sells and replaces its inventory during a period. Energizer's inventory turnover has shown some fluctuation over the years, but currently stands at 2.83, indicating a slight improvement in the management of its inventory compared to the previous year.
Secondly, the receivables turnover ratio reflects how efficiently the company collects cash from its customers. Energizer's receivables turnover has decreased from 9.14 in 2021 to 5.56 in 2023, suggesting a slower collection of receivables, which may require further investigation.
Thirdly, the payables turnover ratio measures how quickly a company pays its suppliers. Energizer's payables turnover has also shown some variation, but the current ratio of 4.95 indicates that the company is efficiently managing its payments to suppliers.
Lastly, the working capital turnover ratio evaluates how effectively the company utilizes its working capital to generate sales. Energizer's working capital turnover has shown improvement, reaching 3.60 in 2023, indicating that the company is generating sales more efficiently in relation to its working capital.
In summary, while the inventory turnover and working capital turnover ratios have shown some improvement, the decrease in receivables turnover may require further attention to ensure efficient management of cash collection from customers.
Average number of days
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 97.35 | 92.73 | 107.16 | 82.07 | 76.41 |
| Days of sales outstanding (DSO) | days | 70.91 | 57.50 | 44.62 | 51.06 | 59.69 |
| Number of days of payables | days | 55.56 | 39.59 | 66.92 | 60.69 | 48.68 |
Energizer Holdings Inc's activity ratios provide insight into the efficiency of the company's operations.
Firstly, the days of inventory on hand (DOH) measures how many days, on average, the company holds its inventory before it is sold. Over the past five years, Energizer Holdings Inc has shown some variability in managing its inventory, with a high of 145.88 days in 2022 and a low of 112.23 days in 2020. The decrease in DOH from 2022 to 2023 indicates an improvement in inventory turnover efficiency.
Secondly, the days of sales outstanding (DSO) metric indicates how long it takes for the company to collect payment after making a sale. Energizer Holdings Inc demonstrates consistent performance in DSO, with a general trend of reducing the number of days from 2019 to 2021, followed by a slight increase in 2023. This suggests a commendable effort in managing accounts receivable effectively.
Lastly, the number of days of payables reflects the average number of days it takes for the company to pay its suppliers. Energizer Holdings Inc has kept its payables days relatively stable over the past five years, with a fluctuation between 62.28 days and 89.24 days. This stability indicates the company's ability to maintain a consistent approach to managing its payment obligations to suppliers.
In conclusion, while there have been fluctuations in some of the activity ratios, Energizer Holdings Inc generally demonstrates efficient management of inventory, accounts receivable, and payables.
Long-term
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 7.67 | 7.99 | 7.21 | 6.96 | 6.27 |
| Total asset turnover | 0.62 | 0.63 | 0.55 | 0.43 | 0.42 |
The fixed asset turnover ratio measures the efficiency of a company in utilizing its fixed assets to generate sales. Energizer Holdings Inc's fixed asset turnover has been relatively high and improving over the past five years, reaching 8.14 in 2023 from 6.89 in 2019. This indicates that the company is effectively utilizing its fixed assets to generate sales.
Total asset turnover, on the other hand, measures how efficiently a company uses all of its assets to generate revenue. Energizer Holdings Inc's total asset turnover has also shown an improving trend, increasing from 0.46 in 2019 to 0.66 in 2023. This indicates that the company is generating more sales for each dollar of assets, reflecting improved efficiency in asset utilization over the years.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that Energizer Holdings Inc has been increasingly efficient in utilizing its assets to generate sales, which is a positive indicator of the company's long-term operational efficiency and performance.