Enersys (ENS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 107.02 | 109.61 | 110.86 | 102.41 | 97.99 | 102.60 | 101.91 | 104.67 | 101.54 | 107.48 | 106.29 | 105.17 | 100.19 | 97.59 | 96.95 | 88.32 | 110.69 | 115.95 | 114.84 | 110.31 |
| Days of sales outstanding (DSO) | days | 60.33 | 56.00 | 57.11 | 52.58 | 59.53 | 49.70 | 52.64 | 55.61 | 68.25 | 58.57 | 72.55 | 73.94 | 86.54 | 71.13 | 67.29 | 68.67 | 81.01 | 69.64 | 62.90 | — |
| Number of days of payables | days | 58.67 | 51.09 | 48.45 | 50.90 | 51.89 | 46.48 | 42.37 | 44.40 | 48.19 | 44.43 | 45.15 | 46.43 | 55.03 | 46.16 | 44.62 | 45.95 | 69.18 | 60.52 | 56.17 | 52.49 |
| Cash conversion cycle | days | 108.68 | 114.52 | 119.52 | 104.09 | 105.63 | 105.82 | 112.19 | 115.88 | 121.59 | 121.62 | 133.68 | 132.67 | 131.71 | 122.56 | 119.63 | 111.04 | 122.53 | 125.08 | 121.58 | 57.82 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 107.02 + 60.33 – 58.67
= 108.68
The cash conversion cycle of Enersys has fluctuated over the years based on the provided data. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From July 5, 2020, to September 30, 2020, the cash conversion cycle increased significantly from 57.82 days to 121.58 days, indicating a potential delay in converting investments into cash. This trend continued to climb reaching a peak of 133.68 days on September 30, 2022. The company then made improvements, as seen in the decreasing trend in the cash conversion cycle from March 31, 2023, to September 30, 2024.
Throughout the observed periods, the cash conversion cycle experienced fluctuations, possibly due to changes in inventory management, collection policies, or payment terms with suppliers and customers. The significant variations in the cash conversion cycle of Enersys highlight the importance of efficient working capital management to ensure timely cash flows and optimal use of resources.
Peer comparison
Mar 31, 2025