Enersys (ENS)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 349,109 | 275,455 | 211,716 | 210,871 |
| Interest expense | US$ in thousands | 51,116 | 49,954 | 59,529 | 37,777 | 38,436 |
| Interest coverage | 0.00 | 6.99 | 4.63 | 5.60 | 5.49 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $51,116K
= 0.00
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. Enersys' interest coverage has shown some variability over the years based on the provided data:
1. As of March 31, 2021, Enersys had an interest coverage ratio of 5.49, indicating that the company generated 5.49 times the earnings needed to cover its interest expenses for that period.
2. By March 31, 2022, the interest coverage ratio had slightly improved to 5.60, suggesting a further increase in earnings relative to interest obligations.
3. However, Enersys experienced a decrease in interest coverage by March 31, 2023, with a ratio of 4.63. This decline may raise concerns about the company's ability to comfortably cover its interest payments with earnings.
4. The interest coverage ratio significantly improved as of March 31, 2024, reaching 6.99. This notable increase indicates a stronger ability to meet interest obligations, potentially due to increased earnings or reduced interest expenses.
5. Surprisingly, the data for March 31, 2025, shows an interest coverage ratio of 0.00, which implies that Enersys did not generate sufficient earnings to cover its interest payments during that period. This could be a cause for alarm as it may indicate financial distress or operational challenges.
Overall, Enersys' interest coverage ratio has displayed fluctuations, with periods of stronger and weaker coverage. It is crucial for stakeholders to monitor this ratio closely to ensure the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Mar 31, 2025