ePlus inc (PLUS)
Payables 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 |
| Payables | US$ in thousands | 313,046 | 281,927 | 270,614 | 315,676 | 294,705 | 295,855 | 351,384 | 220,159 | 299,627 | 192,511 | 165,793 | 136,161 | 162,670 | 121,263 | 149,685 | 165,162 | 159,175 | 104,893 | 136,507 | 82,919 |
| Payables turnover | 5.05 | 5.63 | 6.14 | 5.32 | 5.46 | 5.81 | 4.66 | 7.04 | 5.09 | 7.37 | 8.41 | 9.99 | 7.86 | 10.15 | 8.21 | 7.11 | 7.51 | 11.35 | 8.53 | 14.44 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,581,457K ÷ $313,046K
= 5.05
The payables turnover ratio indicates how efficiently a company is managing its trade credit or accounts payable. A higher payables turnover ratio suggests that ePlus inc is paying its suppliers more frequently within a given period.
Based on the provided data, ePlus inc's payables turnover ratio has fluctuated over the past few years. The ratio was 14.44 as of March 31, 2020, indicating that the company turned over its payables almost 14.44 times during that period. However, the ratio decreased to 7.51 by December 31, 2020, before fluctuating between 5 and 10 in the subsequent periods.
The decreasing trend in the payables turnover ratio from 2020 to 2023 may imply that ePlus inc is taking longer to pay its creditors, which could potentially strain its relationships with suppliers. However, the ratio saw a slight increase in the last two quarters of 2024, indicating a potential improvement in managing payables.
It is essential for ePlus inc to analyze the reasons behind these fluctuations in the payables turnover ratio to ensure effective cash flow management, maintain good supplier relationships, and improve overall financial health. Additionally, comparing the company's payables turnover ratio with industry averages can provide further insights into its performance in managing accounts payable.
Peer comparison
Dec 31, 2024