Energizer Holdings Inc (ENR)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,790,900 | 2,891,400 | 2,761,000 | 2,451,900 | 2,268,200 |
| Total current assets | US$ in thousands | 1,556,600 | 1,590,000 | 1,439,500 | 2,210,900 | 2,036,800 |
| Total current liabilities | US$ in thousands | 734,200 | 697,900 | 946,400 | 1,648,400 | 1,069,000 |
| Working capital turnover | 3.39 | 3.24 | 5.60 | 4.36 | 2.34 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,790,900K ÷ ($1,556,600K – $734,200K)
= 3.39
The working capital turnover ratio for Energizer Holdings Inc has experienced fluctuations over the past five years. In 2023, the ratio stood at 3.60, indicating that the company generated $3.60 in revenue for every dollar of working capital. This represents an improvement compared to the previous year (3.42 in 2022). However, when compared to 2021, there was a significant decrease from 6.13 to 3.60.
The working capital turnover ratio measures how effectively the company is using its working capital to generate sales. A higher ratio is generally favorable as it indicates efficient utilization of working capital. It is important to note that a declining trend, as seen when comparing 2023 to 2021, may signal inefficiencies in managing working capital.
In summary, while the working capital turnover ratio exhibited improvement in 2023 compared to 2022, the significant decrease from 2021 to 2023 calls for further analysis of the company's working capital management strategies.
Peer comparison
Sep 30, 2023