Enersys (ENS)
Debt-to-assets ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 801,965 | 1,041,990 | 1,243,000 | 969,618 | 1,104,730 |
| Total assets | US$ in thousands | 3,466,010 | 3,616,670 | 3,736,650 | 3,462,800 | 3,301,700 |
| Debt-to-assets ratio | 0.23 | 0.29 | 0.33 | 0.28 | 0.33 |
March 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $801,965K ÷ $3,466,010K
= 0.23
The debt-to-assets ratio of Enersys has shown a decreasing trend over the past five years, declining from 0.33 in March 2020 to 0.23 in March 2024. This indicates that the company has been gradually reducing its reliance on debt financing relative to its total assets. A lower debt-to-assets ratio suggests a stronger financial position and lower financial risk for the company, as it indicates a higher proportion of assets are funded by equity rather than debt. The decreasing trend in the ratio could signal improved financial stability and efficiency in managing its capital structure. Overall, Enersys appears to be taking steps to strengthen its balance sheet by reducing its debt levels in relation to its total assets.
Peer comparison
Mar 31, 2024