Enersys (ENS)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 333,324 | 346,665 | 402,488 | 451,808 | 326,979 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 723,857 | 718,320 | 738,130 | 676,988 | 600,319 |
| Cash ratio | 0.46 | 0.48 | 0.55 | 0.67 | 0.54 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($333,324K
+ $—K)
÷ $723,857K
= 0.46
The cash ratio of Enersys has been showing fluctuations over the past five years. The ratio, which measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents, decreased from 0.67 in 2021 to 0.46 in 2024. This downward trend may indicate a decrease in the company's ability to meet its short-term obligations solely with its cash reserves. However, it is worth noting that the ratio was higher in 2022 at 0.55 compared to the current year, suggesting a temporary improvement in liquidity position. Overall, a decreasing cash ratio may raise concerns about Enersys's short-term liquidity management and its ability to meet immediate financial commitments with available cash.
Peer comparison
Mar 31, 2024