ePlus inc (PLUS)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.35 | 2.18 | 2.19 | 2.96 | 2.80 | 2.85 | 2.65 | 2.61 | 3.18 | 2.38 | 2.99 | 3.08 | 3.37 | 2.61 | 2.78 | 2.90 | 2.91 | 2.55 | 3.15 | 2.88 | |
| DSO | days | 108.89 | 167.57 | 166.76 | 123.43 | 130.41 | 127.87 | 137.76 | 140.04 | 114.64 | 153.30 | 121.99 | 118.53 | 108.35 | 139.81 | 131.18 | 125.96 | 125.42 | 143.36 | 115.85 | 126.70 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.35
= 108.89
Days of Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO indicates that the company is collecting payments more quickly, which is generally positive for cash flow and working capital management.
Based on the data provided for ePlus Inc, we observe fluctuations in the DSO over the reporting periods. The DSO for ePlus Inc ranged from a low of 108.35 days on March 31, 2022, to a high of 167.57 days on December 31, 2024. The average DSO over this period is approximately 134 days.
A decreasing trend in DSO, such as the decline observed from December 31, 2022, to March 31, 2023, indicates that the company is managing its account receivables more efficiently, potentially improving its cash conversion cycle. Conversely, an increasing trend in DSO, such as the rise from June 30, 2024, to December 31, 2024, may suggest that the company is experiencing challenges in collecting payments from customers promptly.
It is important for ePlus Inc to closely monitor its DSO and strive to strike a balance between efficient receivables management and maintaining good customer relationships. By analyzing DSO over time and comparing it to industry benchmarks, ePlus Inc can assess its credit policies, collection procedures, and overall financial health.
Peer comparison
Mar 31, 2025