Enersys (ENS)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,536,980 | 3,605,448 | 3,658,343 | 3,653,503 | 3,648,354 | 3,578,556 | 3,510,093 | 3,407,939 | 3,326,085 | 3,235,399 | 3,152,204 | 3,078,784 | 2,977,932 | 2,217,492 | 1,525,258 | 868,646 | 216,125 | 206,658 | 194,210 | 193,402 |
| Total current assets | US$ in thousands | 1,782,700 | 1,772,280 | 1,786,250 | 1,753,050 | 1,895,880 | 1,870,190 | 1,960,680 | 2,012,190 | 1,993,190 | 1,843,450 | 1,768,860 | 1,699,800 | 1,691,320 | 1,684,150 | 1,564,080 | 1,524,940 | 1,562,900 | 1,522,440 | 1,639,810 | 1,519,870 |
| Total current liabilities | US$ in thousands | 723,857 | 662,895 | 665,267 | 635,651 | 718,320 | 669,961 | 672,491 | 655,431 | 738,130 | 622,061 | 604,833 | 604,743 | 676,988 | 605,632 | 566,854 | 543,281 | 600,319 | 594,015 | 565,639 | 598,888 |
| 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 |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,536,980K ÷ ($1,782,700K – $723,857K)
= 3.34
The working capital turnover ratio for Enersys has shown a fluctuating trend over the periods analyzed. The ratio measures how efficiently the company is using its working capital to generate sales revenue.
Enersys' working capital turnover ratio has generally been increasing from 2.06 in December 2020 to 3.34 in March 2024, indicating that the company has been utilizing its working capital more effectively to support its sales operations. This could be a positive sign of improving operational efficiency and potentially better liquidity management.
However, there are periods where the ratio decreased, such as in June and September 2022, which could indicate temporary inefficiencies in working capital management. It is notable that there was a significant jump in the ratio from 0.88 in July 2020 to 3.10 in March 2023, suggesting a substantial improvement in efficiency over that period.
Enersys should continue monitoring its working capital turnover ratio to ensure that it stays at an optimal level, balancing the need for liquidity with the efficient utilization of resources to support its sales growth.
Peer comparison
Mar 31, 2024