Enersys (ENS)

Based on the provided data, Enersys has consistently maintained a strong solvency position with its debt-related ratios.

1. Debt-to-assets ratio: Enersys has shown a debt-to-assets ratio of 0.00 across the years 2021 to 2025. This indicates that the company has not relied heavily on debt to finance its assets and has a strong ability to cover its obligations with its existing assets.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio for Enersys remains at 0.00 for the same period. This implies that the company has been able to finance its operations primarily through equity capital rather than debt.

3. Debt-to-equity ratio: Enersys has maintained a consistent debt-to-equity ratio of 0.00 from 2021 to 2025. This suggests that the company's financial structure is not heavily reliant on debt and that shareholders' equity plays a significant role in funding the company's activities.

4. Financial leverage ratio: The financial leverage ratio, which measures the degree of financial leverage in the company, fluctuated slightly over the years but generally remained within a moderate range. Enersys' financial leverage ratio ranged between 1.98 and 2.51 during the period, indicating that the company has a balanced level of debt in its capital structure.

In conclusion, Enersys demonstrates a prudent financial strategy with minimal debt usage and a solid solvency position as evidenced by its consistent low debt ratios and moderate financial leverage ratio.

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Coverage ratios

Enersys' interest coverage ratio provides insight into the company's ability to meet its interest obligations from its operating profits. The trend analysis reveals fluctuation in interest coverage over the years.

As of March 31, 2021, the interest coverage ratio stood at 5.49, indicating that Enersys generated earnings 5.49 times larger than its interest expenses. This suggests a relatively healthy level of interest coverage.

By March 31, 2022, the interest coverage ratio improved slightly to 5.60, further indicating the company's ability to comfortably cover its interest payments. This stability is a positive sign for creditors and investors.

However, the interest coverage ratio decreased to 4.63 by March 31, 2023, potentially indicating a decline in Enersys' ability to cover its interest expenses from its operating profits. This could be a cause for concern as a lower interest coverage ratio may suggest increased financial risk.

The trend reversed positively by March 31, 2024, with the interest coverage ratio rising to 6.99, reflecting a significant improvement in Enersys' ability to cover its interest obligations. This could be attributed to enhanced operating performance or reduced interest costs.

The data for March 31, 2025, shows an interest coverage ratio of 0.00. This value could signal that Enersys' operating profits were insufficient to cover its interest expenses during this period. A zero or negative interest coverage ratio is a red flag for creditors and investors, indicating financial distress.

In conclusion, while Enersys demonstrated relatively stable interest coverage ratios in some years, the significant drop in 2023 and the alarmingly low ratio in 2025 raise concerns about the company's ability to meet its interest obligations. Further analysis of Enersys' financial performance and debt levels would be necessary to understand the reasons behind these fluctuations and assess the overall financial health of the company.