Enerpac Tool Group Corp (EPAC)
Liquidity ratios
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.88 | 2.85 | 3.11 | 2.83 | 2.40 | 2.66 | 2.48 | 2.29 | 2.24 | 2.72 | 2.67 | 2.74 | 2.65 | 2.77 | 2.82 | 3.26 | 3.23 | 3.10 | 3.07 | 2.88 |
| Quick ratio | 2.10 | 1.97 | 2.13 | 1.91 | 1.70 | 1.75 | 1.57 | 1.47 | 1.48 | 1.79 | 1.76 | 1.81 | 1.81 | 1.85 | 1.82 | 2.27 | 2.24 | 2.10 | 2.14 | 2.09 |
| Cash ratio | 1.29 | 1.09 | 1.30 | 1.17 | 1.04 | 1.01 | 0.87 | 0.84 | 0.79 | 0.92 | 0.95 | 0.96 | 1.04 | 1.01 | 1.00 | 1.45 | 1.44 | 1.34 | 1.26 | 1.31 |
Based on the data provided, Enerpac Tool Group Corp has exhibited stable liquidity ratios over the past few periods. The current ratio has generally been above 2, indicating a strong ability to meet its short-term obligations with current assets. The company's current ratio saw some fluctuations but remained above 2 in most reporting periods, reflecting a healthy liquidity position.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows a similar trend. Enerpac Tool Group Corp's quick ratio remained relatively stable, staying above 1.5 in most periods. This suggests the company has an adequate ability to cover its short-term liabilities without relying on selling inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, also demonstrates a consistent liquidity position for Enerpac Tool Group Corp. The cash ratio has generally been above 1, indicating that the company can cover its short-term liabilities solely with cash on hand.
Overall, Enerpac Tool Group Corp's liquidity ratios suggest the company is well-positioned to meet its short-term obligations and maintain financial stability. The slight variations in ratios over different periods are within reasonable limits and do not raise immediate concerns regarding the company's liquidity position.
Additional liquidity measure
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 101.95 | 113.73 | 107.75 | 99.82 | 88.82 | 120.04 | 111.00 | 80.59 | 81.51 | 100.79 | 102.22 | 101.01 | 88.39 | 102.92 | 107.79 | 103.95 | 94.14 | 96.17 | 84.26 | 80.40 |
The cash conversion cycle of Enerpac Tool Group Corp has shown fluctuations over the past few reporting periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the recent data, the cash conversion cycle ranged from as low as 80.40 days to as high as 120.04 days. The trend indicates that the company's cash conversion cycle has been somewhat volatile, with fluctuations in the efficiency of its working capital management.
A longer cash conversion cycle suggests that the company takes more time to turn its investments into cash, which could indicate inefficiencies in inventory management, sales collection, or payment processes. On the other hand, a shorter cash conversion cycle indicates the company is more efficient in its operations.
It is important for Enerpac Tool Group Corp to continually monitor its cash conversion cycle and strive to optimize it, as a more streamlined cycle can improve liquidity, reduce financing costs, and enhance overall financial performance. An in-depth analysis of the components contributing to the cash conversion cycle, such as days inventory outstanding, days sales outstanding, and days payables outstanding, can provide insights into areas for improvement.