Enersys (ENS)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 170,641 | 139,117 | 2,745,100 | 2,409,610 | -568,741 |
| Payables | US$ in thousands | 369,456 | 378,641 | 393,096 | 323,876 | 281,873 |
| Payables turnover | 0.46 | 0.37 | 6.98 | 7.44 | -2.02 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $170,641K ÷ $369,456K
= 0.46
The payables turnover ratio measures how efficiently a company is managing its accounts payables by calculating how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is paying off its suppliers faster.
Looking at the trend over the past five years for Enersys, we see fluctuations in the payables turnover ratio:
- In 2024, the payables turnover ratio increased to 0.46 from 0.37 in 2023, indicating a moderate improvement in the company's efficiency in paying off its suppliers.
- However, the payables turnover ratio in 2024 is significantly lower than the ratios of 6.98 and 7.44 in 2022 and 2021, respectively. This suggests that Enersys may be taking longer to pay off its suppliers in the current period compared to the previous two years.
- In 2020, the payables turnover ratio was negative at -2.02, which could indicate potential issues with suppliers or payment delays during that period.
Overall, Enersys should further analyze the reasons behind the fluctuations in its payables turnover ratio to ensure efficient management of its accounts payables and maintain good relationships with its suppliers.
Peer comparison
Mar 31, 2024