Enersys (ENS)

Liquidity ratios

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
Current ratio 2.70 3.06 2.97 2.70 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
Quick ratio 1.21 1.42 1.38 1.24 1.27 1.25 1.30 1.30 1.45 1.31 1.49 1.65 1.62 1.66 1.64 1.63 1.64 1.71 1.61 0.71
Cash ratio 0.44 0.65 0.59 0.50 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

Enersys has maintained a strong current ratio over the past few years, ranging from 2.46 to 3.07 as of June 30, 2024, indicating the company's ability to meet its short-term obligations with its current assets.

The quick ratio, or acid-test ratio, reflects Enersys' ability to cover its short-term liabilities with its most liquid assets. The quick ratio has generally been stable and healthy, with values ranging from 1.24 to 1.71 as of December 31, 2024, showing the company's strong liquidity position.

The cash ratio measures Enersys' ability to pay off its current liabilities with only its cash and cash equivalents. The cash ratio has fluctuated but generally remained above 0.4, indicating a satisfactory ability to cover its short-term obligations purely with cash on hand.

Overall, Enersys demonstrates sound liquidity ratios that suggest the company is well-equipped to meet its short-term financial obligations and weather any potential liquidity challenges.

Additional liquidity measure

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
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

Enersys has seen fluctuations in its cash conversion cycle over the analyzed periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.

From July 5, 2020, to September 30, 2024, the cash conversion cycle ranged from 57.82 days to 119.52 days. Notably, during the most recent period ending March 31, 2025, the cash conversion cycle decreased significantly to 65.86 days.

Overall, a decreasing trend in the cash conversion cycle indicates an improvement in liquidity and efficiency in managing working capital. Conversely, an increasing trend can suggest potential issues such as slow collection of receivables or inefficient inventory management.

Managers should closely monitor the cash conversion cycle to ensure effective management of liquidity and working capital, which are crucial for the overall financial health and sustainability of the business.