Enersys (ENS)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.13 | 5.35 | 4.22 | 4.51 | 4.72 | |
| DSO | days | 59.53 | 68.25 | 86.54 | 81.01 | 77.34 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.13
= 59.53
The Days of Sales Outstanding (DSO) is a measure of how long it takes for a company to collect payments from its customers. A lower DSO indicates that the company is efficient in collecting payments, while a higher DSO may suggest potential issues with accounts receivable management or difficulty in collecting payments.
Looking at the trend of Enersys' DSO over the past five years, we observe a fluctuating pattern. In the most recent fiscal year, ending March 31, 2024, the DSO stands at 54.59 days, showing an improvement compared to the previous year where it was 64.49 days.
In the fiscal year ended March 31, 2022, Enersys had a DSO of 80.76 days, which was higher than the preceding fiscal year's 76.37 days. Notably, in the fiscal year ending March 31, 2020, the DSO spiked significantly to 1,039.06 days, which may indicate a temporary issue or anomaly in collections that year.
Overall, Enersys' management of accounts receivable, as depicted by the DSO, has shown variation over the years. It is essential for the company to continue monitoring and improving its collections process to ensure timely receipt of payments from customers and maintain healthy cash flows.
Peer comparison
Mar 31, 2024