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 | 584,212 | 693,411 | 796,028 | 660,957 | 654,301 |
| Total current liabilities | US$ in thousands | 723,857 | 718,320 | 738,130 | 676,988 | 600,319 |
| Quick ratio | 1.27 | 1.45 | 1.62 | 1.64 | 1.63 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($333,324K
+ $—K
+ $584,212K)
÷ $723,857K
= 1.27
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