Enersys (ENS)

Liquidity 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
Current ratio 2.46 2.67 2.69 2.76 2.64 2.79 2.92 3.07 2.70 2.96 2.92 2.81 2.50 2.78 2.76 2.81 2.60 2.56 2.90 2.54
Quick ratio 1.19 1.25 1.30 1.30 1.38 0.44 0.44 0.58 1.54 0.64 0.67 0.67 1.58 0.81 0.73 0.71 0.54 0.46 0.75 0.44
Cash ratio 0.46 0.50 0.49 0.41 0.48 0.44 0.44 0.58 0.55 0.64 0.67 0.67 0.67 0.81 0.73 0.71 0.54 0.46 0.75 0.44

Enersys' liquidity ratios have shown some fluctuations over the time period provided. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been relatively stable, ranging from a low of 2.46 to a high of 3.07. This indicates that Enersys has generally maintained a strong ability to meet its short-term obligations.

On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has been more variable. The quick ratio ranged from a low of 0.44 to a high of 1.58. This variability suggests that Enersys may have had fluctuations in its ability to quickly cover its short-term liabilities without relying on inventory.

The cash ratio, representing the most conservative measure of liquidity by only considering cash and cash equivalents, has also shown some variability, ranging from 0.41 to 0.81. This indicates Enersys' ability to cover its current liabilities with its readily available cash reserves.

Overall, while Enersys generally maintains a healthy liquidity position, stakeholders should pay attention to the fluctuations in the quick ratio, as it provides a more conservative view of the company's ability to meet its short-term obligations.

Additional liquidity measure

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
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

The cash conversion cycle of Enersys has shown significant fluctuations over the periods presented. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the data, we observe that in some periods, such as in March 2023, December 2022, September 2022, and June 2022, the cash conversion cycle was relatively short, ranging from 58.38 days to 66.27 days. This indicates that the company was efficient in managing its working capital, turning inventory into sales and collecting cash quickly.

On the other hand, there were periods, like in September 2023, December 2023, and March 2024, where the cash conversion cycle was notably longer, exceeding 1,000 days. This suggests that Enersys experienced challenges in converting its investments into cash efficiently during these periods, which may have been due to issues such as slow inventory turnover or delayed collection of receivables.

Overall, the varying trends in the cash conversion cycle signal fluctuations in the company's working capital management efficiency. It is crucial for Enersys to monitor and improve its cash conversion cycle to enhance liquidity, optimize operational efficiency, and maintain sustainable financial health.