ePlus inc (PLUS)

Short-term

Turnover ratios

ePlus inc's inventory turnover has been fluctuating over the years, with a significant decrease from 16.79 in March 2021 to 6.37 in March 2023, but showing an improvement to 12.45 in March 2025. This indicates that the company is managing its inventory more effectively in recent years.

The receivables turnover ratio has shown a generally increasing trend from 2.91 in March 2021 to 4.08 in March 2025, suggesting that ePlus inc is collecting its receivables more efficiently.

On the other hand, the payables turnover ratio has been declining consistently from 7.11 in March 2021 to 3.32 in March 2025. This may imply that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships.

The working capital turnover ratio has also been decreasing slightly over the years, indicating that ePlus inc is generating a little less revenue relative to its working capital. This could signal a need for the company to optimize its working capital management to improve efficiency.

Overall, ePlus inc's activity ratios show mixed trends, with improvements in inventory and receivables turnover but some challenges in payables turnover and working capital turnover. The company may need to address its payables management to maintain strong relationships with suppliers and ensure efficient use of working capital.

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Average number of days

Based on the provided data for ePlus inc, the activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- In March 2021, ePlus had 21.74 days worth of inventory on hand.
- This figure increased to 41.61 days in March 2022, indicating a significant increase in the number of days inventory was held.
- By March 2023, the DOH further increased to 57.28 days, suggesting a potential inefficiency in managing inventory.
- However, there was a decrease in the DOH to 30.45 days by March 2024, which may indicate improved inventory management.
- In March 2025, the DOH slightly decreased to 29.31 days, reflecting a continued focus on efficient inventory management.

2. Days of Sales Outstanding (DSO):
- In March 2021, ePlus had 125.42 days of sales outstanding, indicating the average number of days it took to collect revenue from customers.
- The DSO decreased to 108.35 days in March 2022, which may suggest improved efficiency in collecting receivables.
- By March 2023, the DSO increased slightly to 114.64 days, but remained relatively stable.
- However, in March 2024, the DSO increased significantly to 130.25 days, indicating a potential issue with timely collection of receivables.
- The DSO improved to 89.49 days in March 2025, suggesting a positive trend in collecting receivables more promptly.

3. Number of Days of Payables:
- In March 2021, ePlus had 51.32 days of payables outstanding, which represents the average number of days it takes for the company to pay its suppliers.
- The number of days of payables decreased to 36.54 days in March 2022, indicating a faster payment cycle.
- By March 2023, the number of days of payables increased to 51.84 days, suggesting a potential slowdown in paying suppliers.
- In March 2024, the number of days of payables increased further to 68.81 days, indicating a longer payment cycle.
- The number of days of payables reached 109.95 days in March 2025, indicating an even longer payment cycle, which may impact supplier relationships.

In summary, analyzing ePlus inc's activity ratios shows fluctuations in inventory management, sales collection efficiency, and payment cycles over the years. These ratios provide insights into the company's operational efficiency and effectiveness in managing its working capital.

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Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate revenue. Let's analyze the long-term activity ratios of ePlus inc based on the provided data:

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio indicates how well a company is using its fixed assets to generate revenue.
- In March 2021, the company had a Fixed Asset Turnover of 97.10, which increased to 122.95 in March 2022, suggesting an improvement in efficiency in utilizing fixed assets for revenue generation.
- However, in March 2023, the ratio decreased to 77.93, indicating a potential decline in efficiency in generating revenue from fixed assets.
- The data for March 31, 2024, and March 31, 2025 are not provided, making it challenging to assess the trend in the utilization of fixed assets in those years.

2. Total Asset Turnover:
- The Total Asset Turnover ratio reflects how well a company utilizes all its assets to generate revenue.
- ePlus inc had a Total Asset Turnover of 1.46 in both March 2021 and March 2023, indicating consistent performance in asset utilization during these years.
- The ratio decreased slightly to 1.35 in March 2024 and further dropped to 1.10 in March 2025, suggesting a potential decline in the company's overall asset efficiency in revenue generation over the years.

In conclusion, ePlus inc's Fixed Asset Turnover ratio showed fluctuations over the years, indicating varying efficiency in utilizing fixed assets for revenue generation. On the other hand, the Total Asset Turnover ratio remained relatively stable before showing a decrease in recent years, suggesting a potential decline in overall asset efficiency in generating revenue. These trends highlight the importance of monitoring and managing asset utilization to ensure optimal operational performance and profitability.