ePlus inc (PLUS)
Days of inventory on hand (DOH)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 11.99 | 6.37 | 8.77 | 16.79 | 23.82 | |
| DOH | days | 30.45 | 57.28 | 41.61 | 21.74 | 15.33 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.99
= 30.45
The days of inventory on hand (DOH) for ePlus inc have fluctuated over the past five years, indicating varying efficiency in managing inventory levels.
In Mar 31, 2020, the company held its inventory for an average of 15.33 days before selling it, demonstrating a high turnover rate and efficient inventory management. However, there was a significant increase in DOH to 21.74 days in Mar 31, 2021, suggesting a slight decline in efficiency.
Subsequently, in Mar 31, 2022, the DOH increased further to 41.61 days, indicating a notable slowdown in inventory turnover, potentially tying up more capital in inventory. This trend reversed in Mar 31, 2023, with the DOH decreasing to 57.28 days, signaling a return to more efficient inventory management.
Most recently, in Mar 31, 2024, the DOH decreased significantly to 30.45 days, showcasing a positive improvement in inventory turnover and potentially freeing up working capital for other uses.
Overall, ePlus inc's DOH has shown fluctuations over the years, with the company experiencing both periods of efficient inventory turnover and instances of slower inventory management. Further analysis of the company's operations and industry norms would be beneficial to fully assess the implications of these changes in inventory management efficiency.