Enersys (ENS)

Short-term

Turnover ratios

Based on the data provided, we analyze Enersys' activity ratios as follows:

1. Inventory Turnover:
Enersys' inventory turnover ratio fluctuated over the period under review, ranging between 2.50 and 4.13. A higher turnover ratio indicates that the company is efficiently managing its inventory levels and converting them into sales. The slight fluctuations in the ratio suggest that Enersys maintained a relatively stable performance in managing its inventory turnover.

2. Receivables Turnover:
Enersys' receivables turnover ratio ranged from 4.22 to 7.34 during the period. The variations in the ratio indicate changes in the company’s efficiency in collecting outstanding payments from customers. A higher turnover ratio signifies a faster collection of receivables, which is a positive indicator of cash flow management.

3. Payables Turnover:
The payables turnover ratio for Enersys showed a decreasing trend over the reviewed period, ranging between 4.57 and 8.62. A lower turnover ratio may suggest that the company is taking longer to pay its suppliers, which could impact its relationships with vendors. It is important for the company to strike a balance to ensure timely payments and maintain good supplier relationships.

4. Working Capital Turnover:
Enersys' working capital turnover ratio fluctuated between 2.43 and 3.38. A higher ratio indicates better utilization of working capital to generate revenue. The company's ability to efficiently use its working capital reflects its operational effectiveness in generating sales.

In conclusion, Enersys demonstrated varying degrees of efficiency in managing its activity ratios over the period studied. Monitoring these ratios can provide insights into the company's operational performance, efficiency, and liquidity management.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Enersys as follows:

1. Days of Inventory on Hand (DOH):
- Enersys had varying levels of inventory days throughout the periods, ranging from 88.32 days to 145.79 days.
- In general, the company seems to have shown fluctuations in managing its inventory levels efficiently. A higher number of inventory days may indicate slower inventory turnover and potential excess inventory.
- The average DOH for Enersys over the periods provided was approximately 104.71 days.

2. Days of Sales Outstanding (DSO):
- The DSO for Enersys fluctuated between 49.70 days to 86.54 days, indicating the number of days it takes for the company to collect its accounts receivable.
- A lower DSO suggests that the company is efficient in collecting its sales revenue, while a higher number may imply potential issues with credit control or collection procedures.
- The average DSO for Enersys over the periods provided was approximately 62.86 days.

3. Number of Days of Payables:
- Enersys managed its payables within a range of 42.37 days to 79.93 days over the periods.
- A lower number of days of payables suggests that the company is paying its suppliers more quickly, while a higher number indicates potential delays in paying its outstanding obligations.
- The average number of days of payables for Enersys over the periods provided was approximately 52.16 days.

In conclusion, Enersys has shown fluctuations in its activity ratios over the periods, indicating variations in inventory management, accounts receivable collection, and payment to suppliers. Further analysis and comparison with industry benchmarks would be beneficial to assess the company's efficiency in managing its working capital and operational activities.

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Long-term

Enersys' long-term activity ratios provide insight into the efficiency of the company in managing its fixed assets and total assets over time.

1. Fixed Asset Turnover:
- Enersys' fixed asset turnover ratio has shown fluctuations over the years. It was relatively stable around the range of 5.00 to 6.00 from July 2020 to March 2023, indicating that the company was generating revenue efficiently from its fixed assets during this period.
- There was a notable increase in the fixed asset turnover ratio starting from September 2022, reaching its peak at 7.37 by September 30, 2022, and consistently staying above 7.00 until September 30, 2023. This suggests that Enersys was utilizing its fixed assets more effectively to generate sales during this period.
- However, there was a slight decline in the fixed asset turnover ratio in the following periods, dropping to 6.20 by March 31, 2024, and then rising to 7.25 by June 30, 2024. The ratio remained stable at a high level until March 31, 2025.

2. Total Asset Turnover:
- Enersys' total asset turnover ratio reflects the efficiency of the company in generating revenue from all its assets.
- The total asset turnover ratio saw a gradual increase from 0.87 on September 30, 2020, to 1.07 on June 30, 2023. This indicates that Enersys was utilizing its total assets more efficiently to generate sales during this period.
- There was a slight decrease in the total asset turnover ratio from June 30, 2023, to September 30, 2024, with the ratio ranging between 0.88 and 1.03. This suggests a stabilization in the efficiency of generating sales from total assets during this period.
- The data for the total asset turnover ratio after March 31, 2025, is not available, so the trend beyond this date cannot be determined based on the provided information.

Overall, Enersys exhibited fluctuations in its fixed asset turnover ratio, with a notable increase in efficiency in utilizing fixed assets from September 2022 to September 2023. The company also showcased an improvement in generating sales from total assets up to June 30, 2023.