ePlus inc (PLUS)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.08 | 2.80 | 3.18 | 3.37 | 2.91 | |
| DSO | days | 89.49 | 130.25 | 114.64 | 108.35 | 125.42 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.08
= 89.49
ePlus inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers after making a sale.
Analyzing the trend in ePlus inc's DSO over the past five years reveals fluctuations in the efficiency of their accounts receivable management. The DSO decreased from 125.42 days as of March 31, 2021, to 108.35 days as of March 31, 2022, indicating an improvement in the collection period.
However, in the subsequent years, the DSO increased to 114.64 days as of March 31, 2023, and further to 130.25 days as of March 31, 2024, suggesting a slowdown in collecting payments from customers.
The most recent data, as of March 31, 2025, shows a notable improvement with the DSO decreasing to 89.49 days. This indicates that ePlus inc has managed to expedite their collection process, resulting in a more efficient accounts receivable turnover.
Overall, while there have been fluctuations in ePlus inc's DSO over the years, it is crucial for the company to closely monitor and manage this metric to ensure effective working capital management and cash flow optimization.