ePlus inc (PLUS)
Days of inventory on hand (DOH)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 11.99 | 7.38 | 7.74 | 6.70 | 6.37 | 6.24 | 5.16 | 5.65 | 8.77 | 8.65 | 9.15 | 15.81 | 16.79 | 14.69 | 16.14 | 12.48 | 23.82 | 19.11 | 19.30 | 18.13 | |
| DOH | days | 30.45 | 49.43 | 47.13 | 54.47 | 57.28 | 58.53 | 70.70 | 64.65 | 41.61 | 42.18 | 39.91 | 23.08 | 21.74 | 24.84 | 22.61 | 29.24 | 15.33 | 19.10 | 18.91 | 20.13 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.99
= 30.45
Days of Inventory on Hand (DOH) is a key metric that measures how quickly a company is able to sell its inventory. A lower DOH indicates that the company is selling its inventory at a faster rate, which is generally preferable as it minimizes the risk of obsolete or unsold inventory.
Based on the data provided for ePlus inc, we observe fluctuations in the DOH over the past several quarters. In the most recent quarter ending March 31, 2024, the company had a DOH of 30.45 days, which represents a significant improvement compared to the previous quarter. This suggests that ePlus inc was able to manage its inventory more efficiently and sell its products at a faster pace.
Looking at the trend over the past few quarters, we notice that the DOH has been fluctuating between a range of 15.33 days to 70.70 days. The higher values observed in some quarters indicate that ePlus inc may have experienced challenges in managing its inventory effectively, leading to a slower inventory turnover.
Overall, it is important for ePlus inc to focus on maintaining a lower DOH consistently to optimize its inventory management practices. By reducing the number of days inventory is held on hand, the company can improve cash flow, reduce holding costs, and potentially increase profitability.
Peer comparison
Mar 31, 2024