Energizer Holdings Inc (ENR)

Liquidity ratios

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
Current ratio 1.80 1.99 2.03 2.03 2.12 2.16 2.34 2.30 2.28 2.12 2.16 1.53 1.52 1.70 1.74 1.72 1.34 1.64 1.42 1.81
Quick ratio 0.84 0.78 0.78 0.91 1.04 0.85 0.91 0.98 0.95 0.75 0.79 0.63 0.61 0.70 0.79 0.89 0.49 0.99 0.73 0.62
Cash ratio 0.26 0.21 0.24 0.33 0.30 0.28 0.30 0.40 0.29 0.26 0.29 0.22 0.25 0.25 0.33 0.39 0.28 0.61 0.31 0.26

Energizer Holdings Inc's liquidity ratios have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has generally been above 2, indicating a healthy liquidity position. However, the ratio decreased from 2.34 in March 2023 to 1.53 in December 2021 before recovering to 1.80 in September 2024.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has been more volatile, ranging from 0.49 to 1.04. This ratio deteriorated from 1.04 in September 2023 to as low as 0.49 in December 2020 before improving slightly to 0.84 in September 2024.

The cash ratio, which indicates the company's ability to cover its current liabilities with cash and cash equivalents alone, has also exhibited fluctuations. It ranged from 0.21 to 0.61, with the lowest point being in September 2020. The ratio has shown some improvement since then, reaching 0.26 in September 2024.

Overall, while Energizer Holdings Inc's current ratio generally reflects a comfortable liquidity position, the quick ratio and cash ratio show greater variability and potential liquidity challenges at times. Management should continue to monitor these ratios to ensure the company has sufficient liquidity to meet its short-term obligations.

Additional liquidity measure

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
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

The cash conversion cycle of Energizer Holdings Inc measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales to customers, ultimately back to cash through the collection of accounts receivable.

From the data provided, we observe fluctuations in the company's cash conversion cycle over the past few quarters. Historically, the cash conversion cycle has ranged from around 78 to 124 days.

In the latest quarter, ending on September 30, 2024, the cash conversion cycle was 92.77 days. This indicates that on average, it took Energizer Holdings Inc approximately 92.77 days to convert its investments in inventory and other resources into cash flows from sales.

The trend over the past few quarters shows that the cash conversion cycle has been relatively stable, with some minor fluctuations. Generally, a shorter cash conversion cycle is preferable as it signifies that the company is efficiently managing its working capital and resources. However, it is important to note that the ideal length of the cash conversion cycle can vary by industry and company-specific factors.

Overall, further analysis and comparison with industry benchmarks may provide additional insights into the effectiveness of Energizer Holdings Inc's working capital management and operational efficiency.