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	—	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	—	1.42	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	—	0.65	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	65.86	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.