Enerpac Tool Group Corp (EPAC)
Liquidity ratios
| 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 | Aug 31, 2019 | May 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.43 | 2.64 |
| Quick ratio | 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 | 1.12 | 1.73 |
| Cash ratio | 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 | 0.70 | 0.86 |
Enerpac Tool Group Corp's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, a measure of the company's ability to cover its short-term liabilities with its current assets, has ranged between 2.24 and 3.26. A higher current ratio indicates a stronger liquidity position, and Enerpac's current ratio has generally been above 2, suggesting a healthy liquidity position overall.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has varied between 1.47 and 2.27. While the quick ratio is generally lower than the current ratio, the values observed for Enerpac indicate that the company has a reasonable ability to meet its short-term obligations without relying on inventory liquidation.
The cash ratio, representing the most stringent liquidity measure by considering only cash and cash equivalents, has ranged from 0.79 to 1.45. Enerpac's cash ratio indicates that the company has maintained a sufficient level of cash to cover its immediate liabilities, but there have been some fluctuations in this measure over time.
Overall, Enerpac Tool Group Corp appears to have a solid liquidity position based on the current, quick, and cash ratios analyzed over the recent quarters. The company has generally maintained ratios above industry benchmarks, reflecting a healthy ability to meet its short-term financial obligations.
Additional liquidity measure
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 70.45 | 120.23 |
The cash conversion cycle of Enerpac Tool Group Corp has shown fluctuations over the past few quarters. The cycle measures how long it takes for the company to convert its resources invested in inventory into cash inflows from sales.
The company's cash conversion cycle ranged from a low of 70.45 days to a high of 120.23 days over the sample period. A shorter cash conversion cycle indicates that the company is efficient in managing its working capital, while a longer cycle suggests inefficiency or potential liquidity issues.
In analyzing the trend, we observe that the cash conversion cycle fluctuated without a clear pattern. For example, the cycle in May 2020 was relatively short at 70.45 days, indicating effective management of inventory and collections, but this trend was not sustained as evidenced by the longer cycles in subsequent quarters.
Overall, the company should aim to shorten its cash conversion cycle to improve liquidity and working capital management. This can be achieved by optimizing inventory turnover, streamlining accounts receivables, and managing accounts payables efficiently.