ePlus inc (PLUS)
Payables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,499,670 | 1,674,510 | 1,550,190 | 1,360,040 | 1,174,770 |
| Payables | US$ in thousands | 451,734 | 315,676 | 220,159 | 136,161 | 165,162 |
| Payables turnover | 3.32 | 5.30 | 7.04 | 9.99 | 7.11 |
March 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,499,670K ÷ $451,734K
= 3.32
The payables turnover ratio indicates how efficiently ePlus inc is managing its accounts payable by measuring how many times the company pays off its suppliers within a specific period. A higher payables turnover ratio generally indicates that the company is paying its suppliers more quickly.
Based on the data provided, ePlus inc's payables turnover ratio has fluctuated over the past five years. In March 2021, the payables turnover ratio was 7.11, which increased to 9.99 by March 2022, reflecting an improvement in managing accounts payable.
However, the payables turnover ratio then decreased to 7.04 in March 2023 and further dropped to 5.30 in March 2024. This decline may suggest that ePlus inc took longer to pay off its suppliers during these periods.
In the latest year, March 31, 2025, the payables turnover ratio decreased significantly to 3.32, indicating a further slowdown in paying off suppliers compared to the previous years.
Overall, fluctuations in ePlus inc's payables turnover ratio suggest varying trends in how efficiently the company is managing its accounts payable and its relationships with suppliers. It is important for ePlus inc to monitor and potentially improve this ratio to maintain healthy supplier relationships and working capital management.
Peer comparison
Mar 31, 2025