Energizer Holdings Inc (ENR)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 112.70 | 110.64 | 84.86 | 72.44 | 87.41 |
September 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.35 + 70.91 – 55.56
= 112.70
The cash conversion cycle (CCC) of Energizer Holdings Inc has fluctuated over the past five years. In 2023, the CCC was 121.11 days, which decreased from the previous year's 137.64 days. This indicates a more efficient cash conversion cycle, as the company took less time to convert its investments in inventory and receivables into cash.
In 2021, the CCC was 93.60 days, showing a significant improvement from the previous two years. However, in 2020, the CCC increased to 74.24 days from 95.00 days in 2019, which may indicate potential inefficiencies in managing working capital.
Overall, the trend in the CCC suggests that Energizer Holdings Inc has made some improvements in managing its working capital over the years, but there have been fluctuations that may require further analysis to understand the underlying reasons for these changes.
Peer comparison
Sep 30, 2023