Energizer Holdings Inc (ENR)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.74 | 99.37 | 100.95 | 96.42 | 97.35 | 95.79 | 93.03 | 93.32 | 93.24 | 130.03 | 123.00 | 110.26 | 107.16 | 139.71 | 124.99 | 113.12 | 115.62 | 116.69 | 104.66 | 89.81 |
| Days of sales outstanding (DSO) | days | 59.77 | 53.64 | 49.16 | 55.77 | 71.00 | 54.44 | 50.06 | 51.99 | 57.50 | 48.52 | 47.79 | 55.41 | 44.62 | 49.07 | 47.03 | 51.94 | 48.41 | 54.13 | 54.56 | 61.33 |
| Number of days of payables | days | 63.74 | 55.15 | 54.86 | 56.39 | 55.56 | 47.70 | 41.04 | 43.61 | 39.80 | 53.76 | 55.18 | 61.26 | 66.92 | 82.46 | 76.70 | 84.48 | 85.50 | 72.38 | 62.39 | 59.54 |
| Cash conversion cycle | days | 92.77 | 97.86 | 95.25 | 95.80 | 112.79 | 102.54 | 102.05 | 101.70 | 110.93 | 124.80 | 115.62 | 104.40 | 84.86 | 106.31 | 95.32 | 80.58 | 78.53 | 98.43 | 96.83 | 91.60 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.74 + 59.77 – 63.74
= 92.77
The cash conversion cycle of Energizer Holdings Inc has shown some fluctuations over the recent quarters. This metric represents the time it takes for the company to convert its investments in inventory and other resources back into cash through sales. A lower cash conversion cycle is generally preferable as it indicates that the company is able to efficiently manage its working capital.
Energizer's cash conversion cycle has ranged from a low of 78.53 days to a high of 124.80 days over the past two years. In the latest quarter, the cash conversion cycle was 92.77 days, indicating that it took the company approximately 92.77 days to convert its investments in inventory and accounts receivable into cash from sales.
The fluctuations in the cash conversion cycle suggest changes in the company's efficiency in managing its working capital. A longer cash conversion cycle may indicate inefficiencies in inventory management, collection of accounts receivable, or delays in the payment of accounts payable. On the other hand, a shorter cash conversion cycle may suggest improved operational efficiency and better liquidity.
It is important for Energizer Holdings Inc to analyze the factors contributing to changes in its cash conversion cycle and take appropriate actions to optimize working capital management. By consistently monitoring and improving this metric, the company can enhance its financial performance and strengthen its overall operational efficiency.
Peer comparison
Sep 30, 2024