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 | 2,523,738 | 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 | 6.22 | 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
= $2,523,738K ÷ $405,694K
= 6.22
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