Enersys (ENS)
Inventory turnover
| 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 | Jul 5, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 125,030 | 122,639 | 97,529 | 96,494 | 93,743 | 2,698,309 | 2,708,648 | 2,715,216 | 2,713,858 | 135,952 | 133,965 | 116,140 | 80,312 | -132,319 | -273,923 | -419,536 | -568,741 | -579,678 | -571,431 | -535,802 |
| Inventory | US$ in thousands | 697,698 | 755,163 | 776,503 | 809,402 | 797,798 | 835,198 | 811,998 | 777,660 | 715,712 | 671,399 | 640,998 | 563,914 | 518,247 | 515,469 | 516,589 | 510,598 | 519,460 | 557,513 | 507,081 | 520,115 |
| Inventory turnover | 0.18 | 0.16 | 0.13 | 0.12 | 0.12 | 3.23 | 3.34 | 3.49 | 3.79 | 0.20 | 0.21 | 0.21 | 0.15 | -0.26 | -0.53 | -0.82 | -1.09 | -1.04 | -1.13 | -1.03 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $125,030K ÷ $697,698K
= 0.18
Enersys' inventory turnover ratio has shown significant fluctuations over the past several quarters, indicating varying efficiency in managing its inventory levels. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period.
The data reveals that Enersys experienced a sharp decline in inventory turnover from the fourth quarter of 2020 to the third quarter of 2021, with negative values indicating potential issues such as overstocking or slow-moving inventory. This negative trend improved slightly in the subsequent quarters up to the second quarter of 2022, where the ratio increased to levels around 3 to 3.8, suggesting a more effective management of inventory during this period.
However, this improvement was not sustained, as the inventory turnover ratio sharply declined in the first quarter of 2023. The ratio remained relatively low but stable throughout the rest of 2023, ranging from 0.12 to 0.16, indicating a potential slowdown in sales relative to the level of inventory held.
The low inventory turnover ratios in recent quarters may suggest challenges in efficiently selling and replenishing inventory, potentially leading to issues such as excess inventory carrying costs or obsolete stock.
In conclusion, Enersys should closely monitor its inventory management practices and work towards optimizing its inventory turnover ratio to ensure efficient use of resources and improve overall financial performance.
Peer comparison
Mar 31, 2024
Mar 31, 2024