Enersys (ENS)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,466,010 | 3,616,670 | 3,736,650 | 3,462,800 | 3,301,700 |
| Total stockholders’ equity | US$ in thousands | 1,753,640 | 1,600,280 | 1,489,370 | 1,539,760 | 1,300,520 |
| Financial leverage ratio | 1.98 | 2.26 | 2.51 | 2.25 | 2.54 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,466,010K ÷ $1,753,640K
= 1.98
The financial leverage ratio of Enersys has shown a declining trend over the past five years. From a peak of 2.54 in March 2020, the ratio decreased to 2.25 in March 2021, and further to 1.98 in March 2024. This indicates that the company has reduced its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests a lower level of financial risk and a greater ability for the company to meet its debt obligations. Overall, Enersys' decreasing financial leverage ratio reflects a positive trend in its capital structure management.
Peer comparison
Mar 31, 2024