Enersys (ENS)

Solvency ratios

	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jul 5, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Debt-to-assets ratio	0.23	0.25	0.27	0.26	0.29	0.31	0.36	0.37	0.33	0.33	0.31	0.29	0.28	0.30	0.31	0.33	0.33	0.33	0.34	0.31
Debt-to-capital ratio	0.31	0.34	0.36	0.35	0.39	0.42	0.48	0.49	0.45	0.44	0.41	0.39	0.39	0.41	0.42	0.44	0.46	0.44	0.46	0.43
Debt-to-equity ratio	0.46	0.51	0.57	0.54	0.65	0.72	0.92	0.96	0.83	0.79	0.69	0.65	0.63	0.69	0.73	0.79	0.85	0.80	0.85	0.76
Financial leverage ratio	1.98	2.03	2.10	2.07	2.26	2.34	2.57	2.59	2.51	2.39	2.24	2.22	2.25	2.28	2.33	2.41	2.54	2.45	2.50	2.46

Enersys' solvency ratios provide insights into the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has shown a fluctuating trend over the periods analyzed but has generally remained within a manageable range, indicating that Enersys has been able to finance its assets mainly through equity rather than debt.

The debt-to-capital ratio, which includes both debt and equity in the capital structure, has also exhibited variability. It suggests that Enersys relies more on debt financing compared to equity to fund its operations and investments. However, the ratio has generally stayed below 0.5, indicating a balanced mix of debt and equity in the capital structure.

The debt-to-equity ratio has shown a declining trend over the periods reviewed, suggesting a reduction in Enersys' reliance on debt to finance its operations. This decreasing trend indicates that Enersys has been strengthening its financial position by reducing debt levels relative to equity.

The financial leverage ratio, which indicates the proportion of assets financed by debt, shows fluctuations but has generally remained around 2.0 or slightly higher, indicating that Enersys utilizes a moderate level of financial leverage to support its operations.

Overall, based on the solvency ratios analyzed, Enersys appears to have maintained a reasonable balance between debt and equity financing, indicating a relatively stable financial position and the ability to meet its long-term financial obligations.

Coverage ratios

	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jul 5, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Interest coverage	6.85	6.57	5.68	4.92	4.54	4.22	4.44	4.93	5.60	5.75	5.83	5.84	5.43	4.28	3.88	4.03	4.36	4.80	5.45	6.20

Enersys has demonstrated a relatively stable interest coverage over the past few quarters, with a ratio ranging from 3.88 to 6.85. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income. A higher ratio indicates that the company is more capable of covering its interest expenses with its earnings.

Enersys' interest coverage has generally been above 4, suggesting a healthy ability to meet its interest obligations. The increasing trend in the interest coverage ratio from 3.88 in September 2020 to 6.85 in March 2024 indicates an improvement in the company's ability to cover its interest expenses over time.

Overall, Enersys' interest coverage ratio reflects a reasonably strong financial position and indicates that the company has been managing its debt effectively to maintain a comfortable level of interest coverage.