ePlus inc (PLUS)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.45 | 3.62 | 3.50 | 3.22 | 4.10 | 3.00 | 3.61 | 3.86 | 4.23 | 3.31 | 3.62 | 3.50 | 4.01 | 3.44 | 4.29 | 3.97 | 4.24 | 3.74 | 4.12 | 3.82 | |
| DSO | days | 105.73 | 100.80 | 104.18 | 113.33 | 88.99 | 121.53 | 100.97 | 94.48 | 86.26 | 110.35 | 100.86 | 104.22 | 91.13 | 106.21 | 85.06 | 91.84 | 86.17 | 97.60 | 88.55 | 95.63 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.45
= 105.73
Days Sales Outstanding (DSO) is a crucial metric that measures the average number of days it takes for a company to collect revenue after making a sale. A higher DSO indicates that a company is taking longer to collect its accounts receivable, which can negatively impact cash flow and liquidity. Conversely, a lower DSO suggests faster collection of receivables and better cash flow management.
Looking at the historical DSO data of ePlus inc, we can observe fluctuations in the collection efficiency over time. The DSO for ePlus inc ranged from as low as 85.06 days to as high as 121.53 days over the past several quarters. The latest DSO of 105.73 days as of March 31, 2024, indicates that the company takes, on average, approximately 106 days to collect its accounts receivable.
Analyzing the trend, we note that the DSO has shown variability, with some quarters exhibiting improvements in collection efficiency (lower DSO) while others have seen deteriorations (higher DSO). It is essential for ePlus inc to monitor and manage its DSO closely to ensure timely collections and maintain healthy cash flow levels.
Overall, the trend in ePlus inc's DSO suggests room for optimization in accounts receivable management practices to enhance cash flow efficiency and working capital management. A sustained effort to shorten the DSO would positively impact the company's liquidity position and financial health.
Peer comparison
Mar 31, 2024