ePlus inc (PLUS)
Inventory turnover
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,581,457 | 1,586,622 | 1,662,687 | 1,679,713 | 1,610,245 | 1,720,104 | 1,637,260 | 1,550,194 | 1,526,510 | 1,419,123 | 1,393,736 | 1,360,037 | 1,278,592 | 1,230,328 | 1,229,432 | 1,174,769 | 1,194,697 | 1,190,539 | 1,164,954 | 1,197,213 |
| Inventory | US$ in thousands | 99,021 | 93,857 | 89,134 | 139,690 | 218,046 | 222,122 | 244,331 | 243,286 | 244,798 | 274,863 | 246,873 | 155,060 | 147,739 | 134,514 | 77,752 | 69,963 | 81,304 | 73,751 | 93,323 | 50,268 |
| Inventory turnover | 15.97 | 16.90 | 18.65 | 12.02 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,581,457K ÷ $99,021K
= 15.97
The inventory turnover ratio for ePlus inc has shown fluctuations over the period under consideration.
From March 31, 2020, to December 31, 2021, the inventory turnover ratio ranged from approximately 8.65 to 23.82, indicating variations in the efficiency of managing inventory levels and sales turnover within the company.
However, starting from June 30, 2021, the inventory turnover ratio began a downward trend, falling to levels below 10 by September 30, 2021. This significant decrease could suggest potential issues with inventory management, such as overstocking or slow-moving inventory.
The low inventory turnover continued into the following quarters, with ratios ranging from 5.16 to 9.15 up to December 31, 2022. This prolonged period of low turnover may raise concerns about inventory obsolescence or inadequate sales strategies.
Subsequently, there was a slight improvement in inventory turnover from March 31, 2023, to June 30, 2023, with ratios increasing to the range of 6.37 to 7.74. However, these levels remained below the earlier benchmark set in 2020.
By the end of December 31, 2024, the inventory turnover ratio showed some recovery, reaching approximately 15.97. This uptrend continued into the following quarters, with ratios reaching 18.65 by June 30, 2024, and 16.90 by September 30, 2024, suggesting potentially improved inventory management efficiency.
Overall, the analysis of ePlus inc's inventory turnover indicates a period of fluctuation and challenges in inventory management efficiency, followed by some signs of improvement in recent quarters. Monitoring this ratio going forward will be essential to assess the company's ability to optimize inventory levels and enhance operational performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024