ePlus inc (PLUS)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.80 | 3.18 | 3.37 | 2.91 | 3.30 | |
| DSO | days | 130.25 | 114.64 | 108.35 | 125.42 | 110.70 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.80
= 130.25
The Days Sales Outstanding (DSO) of ePlus inc has shown fluctuation over the past five years. As of March 31, 2024, the DSO increased to 105.73 days compared to the previous year's 88.99 days, indicating that it took ePlus inc longer to collect its accounts receivable in the most recent period. This increase could potentially signify a less efficient accounts receivable management process, leading to a higher number of days required to convert credit sales into cash.
It is noteworthy that the DSO peaked in 2020 at 91.13 days before decreasing in the subsequent years, suggesting an improvement in the collection efficiency during that period. However, the recent uptick in DSO may raise concerns about potential difficulties in collecting outstanding receivables promptly, which could impact the company's cash flow and liquidity position. Further analysis and monitoring of the accounts receivable management practices of ePlus inc may be warranted to address any underlying issues affecting the DSO metric.
Peer comparison
Mar 31, 2024