Enersys (ENS)
Days of inventory on hand (DOH)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.73 | 3.59 | 3.64 | 4.32 | 4.43 | |
| DOH | days | 97.98 | 101.54 | 100.19 | 84.49 | 82.33 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.73
= 97.98
The days of inventory on hand (DOH) for Enersys have fluctuated significantly over the past five years. In March 2020, the company did not provide data for DOH. However, in subsequent years, there was a notable increase in DOH, reaching 78.50 days in March 2021 and further increasing to 95.16 days in March 2022. This sudden rise in inventory days indicates that the company was holding inventory for a longer period before selling it.
However, the most significant increase was observed in March 2023 when the DOH spiked to 2,093.18 days, reflecting a substantial inventory buildup relative to sales. This sharp increase may suggest inefficiencies in inventory management, such as overordering or slowing sales, which could tie up capital and lead to higher carrying costs.
In March 2024, the DOH decreased to 1,492.37 days but remained significantly elevated compared to historical levels. This reduction might indicate efforts to improve inventory turnover and streamline operations. However, Enersys should continue monitoring its inventory levels closely to ensure optimal utilization of resources and maintain a balance between satisfying customer demand and managing costs effectively.
Peer comparison
Mar 31, 2024