Enersys (ENS)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 1,012.81 | 1,279.93 | 1,751.48 | 1,819.55 | 1,696.55 | 66.27 | 62.94 | 58.38 | 124.17 | 949.91 | 942.77 | 850.23 | 958.69 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 2,036.79 + 54.57 – 1,078.55
= 1,012.81
The cash conversion cycle of Enersys has fluctuated significantly over the past few quarters. From March 31, 2024, to December 31, 2023, the cash conversion cycle decreased from 1,279.93 days to 1,012.81 days, indicating an improvement in the efficiency of Enersys' cash management.
However, prior to this improvement, the cash conversion cycle experienced a significant increase from September 30, 2023, to June 30, 2023, reaching 1,751.48 days. This prolonged cycle suggests that Enersys was taking longer to convert its investments in inventory and other resources into cash during that period.
The most notable improvement in the cash conversion cycle occurred from December 31, 2022, to September 30, 2022, where the cycle decreased from 66.27 days to 58.38 days. This sharp decline indicates a significant enhancement in Enersys' liquidity position and efficiency in managing its working capital.
Overall, Enersys has shown variability in its cash conversion cycle performance, with fluctuations indicating potential challenges in managing working capital efficiently and converting investments into cash in a timely manner. It is essential for Enersys to continue monitoring and optimizing its cash conversion cycle to strengthen its financial position and operational effectiveness.
Peer comparison
Mar 31, 2024