Enersys (ENS)

Quick ratio

Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Cash US$ in thousands 333,324 346,665 402,488 451,808 326,979
Short-term investments US$ in thousands
Receivables US$ in thousands 528,849 644,795 736,104 614,506 615,253
Total current liabilities US$ in thousands 723,857 718,320 738,130 676,988 600,319
Quick ratio 1.19 1.38 1.54 1.58 1.57

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($333,324K + $—K + $528,849K) ÷ $723,857K
= 1.19

The quick ratio of Enersys has shown a declining trend over the past five years. The quick ratio decreased from 1.57 in March 2020 to 1.19 in March 2024. This indicates a decrease in the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1.0 generally indicates that a company can cover its current liabilities with its quick assets.

While a quick ratio of 1.19 in March 2024 still suggests that Enersys is able to meet its short-term obligations, the declining trend warrants further investigation into the company's liquidity position. It may be advisable for stakeholders to monitor the trend closely to ensure that Enersys remains capable of fulfilling its short-term financial commitments.


Peer comparison

Mar 31, 2024

Company name
Symbol
Quick ratio
Enersys
ENS
1.19
WESCO International Inc
WCC
1.81