Enersys (ENS)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 6.69 7.23 6.82 6.45 5.66 — — — 4.52 — — — 4.85 — — — — — — —
Payables turnover 0.34 0.36 0.30 0.28 0.25 7.82 7.85 7.91 6.90 0.43 0.45 0.40 0.25 -0.49 -1.08 -1.73 -2.02 -2.08 -2.06 -1.77
Working capital turnover 3.34 3.25 3.26 3.27 3.10 2.98 2.72 2.51 2.65 2.65 2.71 2.81 2.94 2.06 1.53 0.88 0.22 0.22 0.18 0.21

The inventory turnover for Enersys has been fluctuating over recent quarters, ranging from as low as 0.12 to as high as 3.79. The low inventory turnover ratios indicate that the company is holding onto inventory for extended periods, which could potentially lead to increased carrying costs or outdated inventory issues.

The receivables turnover has shown variability as well, with figures ranging from 4.52 to 7.23. A higher receivables turnover ratio indicates that Enersys is efficiently collecting revenues from its customers, but the decreasing trend in recent quarters warrants closer monitoring to ensure timely collection of outstanding receivables.

In terms of payables turnover, Enersys has demonstrated inconsistent performance, with figures fluctuating between 0.25 and 7.91. A low payables turnover could suggest potential liquidity issues or challenges in managing payable obligations efficiently.

The working capital turnover ratio for Enersys has generally remained stable around 2-3 range, indicating that the company is effectively utilizing its working capital to generate sales. However, the decreasing trend observed in the most recent quarters may signal inefficiencies in managing working capital or potential challenges in converting working capital into revenue.

Overall, Enersys should focus on optimizing its inventory management, ensuring timely collection of receivables, and efficiently managing payables to improve its working capital turnover and enhance overall operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 2,036.79 2,247.53 2,906.04 3,061.66 3,106.33 112.98 109.42 104.54 96.26 1,802.55 1,746.46 1,772.25 2,355.32 — — — — — — —
Days of sales outstanding (DSO) days 54.57 50.47 53.53 56.60 64.51 — — — 80.78 — — — 75.32 — — — — — — —
Number of days of payables days 1,078.55 1,018.06 1,208.09 1,298.71 1,474.29 46.70 46.48 46.15 52.87 852.64 803.69 922.01 1,471.94 — — — — — — —

Enersys's activity ratios indicate the efficiency of the company's management in managing its inventory, receivables, and payables.

- Days of Inventory on Hand (DOH): Enersys has shown fluctuations in its inventory turnover efficiency over the periods provided, with the number of days decreasing from over 3,000 days to around 100 days, indicating a significant improvement in managing inventory levels. This signifies that the company is now able to sell its inventory faster and reduce the holding period.

- Days of Sales Outstanding (DSO): The Days of Sales Outstanding have also varied over the periods, with figures ranging from around 50 days to over 80 days. A lower DSO is generally favorable as it shows that the company is collecting receivables more quickly, which can improve cash flow and reduce the risk of bad debts.

- Number of Days of Payables: Enersys’s days of payables have shown fluctuations as well, with numbers ranging from around 46 days to over 1,400 days. A higher number of days of payables indicates that the company takes longer to pay its suppliers, which may offer a source of short-term financing but could strain supplier relationships.

Overall, Enersys has shown improvements in managing its inventory and receivables efficiently, but it needs to carefully balance its payables management to maintain good relationships with suppliers while also effectively managing cash flow.

Long-term

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
Fixed asset turnover 6.65 6.89 7.17 7.12 7.11 7.22 7.29 6.97 6.61 6.45 6.30 6.17 5.99 4.37 3.06 1.76 0.45 0.44 0.47 0.47
Total asset turnover 1.02 1.03 1.05 1.05 1.01 1.00 0.97 0.92 0.89 0.90 0.90 0.89 0.86 0.64 0.46 0.26 0.07 0.06 0.06 0.06

Enersys has shown consistent improvement in its fixed asset turnover ratio over the past few quarters, with the ratio ranging between 6.17 to 7.29. This indicates that the company is generating more revenue for each dollar invested in fixed assets. The trend suggests efficient utilization of fixed assets to generate sales.

In contrast, the total asset turnover ratio has been relatively stable, fluctuating between 0.86 to 1.05. This ratio measures how effectively the company is generating revenue from all its assets. While the ratio has not shown significant improvement, it indicates a consistent level of sales generated relative to the total assets employed in the business.

Overall, Enersys's long-term activity ratios demonstrate a positive trend in terms of utilizing fixed assets efficiently to drive revenue, while maintaining a stable level of overall asset turnover.