Enersys (ENS)

Payables turnover

Mar 31, 2025 Dec 31, 2024 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 Jul 5, 2020
Cost of revenue (ttm) US$ in thousands 1,852,607 2,508,796 2,513,720 2,543,611 2,598,766 2,686,457 2,780,999 2,822,587 2,867,760 2,836,280 2,788,506 2,699,039 2,607,277 2,511,077 2,413,164 2,330,471 1,708,893 1,622,593 1,641,845 1,689,460
Payables US$ in thousands 405,694 351,152 333,671 354,729 369,456 342,066 322,805 343,336 378,641 345,255 344,941 343,340 393,096 317,585 294,975 293,377 323,876 269,019 252,667 242,955
Payables turnover 4.57 7.14 7.53 7.17 7.03 7.85 8.62 8.22 7.57 8.22 8.08 7.86 6.63 7.91 8.18 7.94 5.28 6.03 6.50 6.95

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,852,607K ÷ $405,694K
= 4.57

The payables turnover ratio represents how efficiently a company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance within a certain period.

Analyzing the payables turnover of Enersys over the past few years reveals a fluctuating trend. From July 5, 2020, to September 30, 2021, the ratio showed an increasing trend, indicating that the company was managing its payables more efficiently during this period. This improvement could be attributed to better negotiation terms with suppliers or improved operational efficiencies.

However, from March 31, 2021, to March 31, 2025, the payables turnover ratio started to decline, hitting its lowest point at 4.57 on March 31, 2025. This suggests that Enersys took longer to pay off its accounts payable relative to its previous performance. A decreasing payables turnover ratio could signify cash flow issues, strained supplier relations, or potential inefficiencies in the payment process.

Overall, Enersys should closely monitor its payables turnover ratio to ensure it maintains a balance between timely payments to suppliers and optimizing its cash flow. Further analysis of the underlying reasons for the fluctuations in the ratio can provide insights into the company's liquidity management and financial health.


Peer comparison

Mar 31, 2025

Company name
Symbol
Payables turnover
Enersys
ENS
4.57
WESCO International Inc
WCC