ePlus inc (PLUS)

Short-term

Turnover ratios

ePlus inc's activity ratios provide insights into how efficiently the company manages its operations related to inventory, receivables, payables, and working capital.

1. Inventory Turnover: ePlus inc's inventory turnover ratio fluctuated over the periods provided, ranging from a high of 18.65 to a low of 5.16. A higher turnover indicates that the company is selling its inventory more rapidly, which is generally favorable. However, a significant decrease in the ratio could suggest potential issues such as overstocking or declining sales.

2. Receivables Turnover: The receivables turnover ratio for ePlus inc ranged from 2.18 to 3.37. This ratio indicates how efficiently the company collects payments from its customers. A higher turnover is usually preferred as it implies faster collection of receivables. A decrease in the ratio could signal challenges with collecting payments from customers.

3. Payables Turnover: ePlus inc's payables turnover ratio varied between 2.55 and 11.35. A higher turnover ratio indicates that the company takes less time to pay its suppliers. However, a very high ratio could indicate potential issues such as aggressive payment terms that may strain the company's cash flow.

4. Working Capital Turnover: The working capital turnover ratio for ePlus inc ranged from 2.12 to 5.44. This ratio measures how efficiently the company generates revenue relative to its working capital. A higher ratio suggests that the company is effectively utilizing its working capital to generate sales. A declining ratio may indicate inefficiencies in utilizing working capital.

Overall, analyzing these activity ratios together can provide a comprehensive view of ePlus inc's operational efficiency and effectiveness in managing its resources. It is crucial for the company to monitor these ratios regularly to identify any trends or areas for improvement in its operational performance.

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Average number of days

ePlus inc's activity ratios can provide insights into its efficiency in managing its inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):: ePlus inc's DOH has fluctuated over the periods analyzed, ranging from a low of 19.57 days to a high of 70.70 days. A lower DOH indicates that the company is selling its inventory quickly, while a higher DOH suggests slower inventory turnover. The trend shows some variability but seems to be within a manageable range, with a recent decrease in DOH from 70.70 days to 38.16 days.

2. Days of Sales Outstanding (DSO): ePlus inc's DSO has also varied, from 108.35 days to 167.57 days. A lower DSO suggests faster collection of accounts receivable, while a higher DSO indicates slower collection. The DSO trend seems volatile, with some periods showing improvements and others showing increases. The recent DSO of 154.00 days indicates that the company may be experiencing delays in collecting payments.

3. Number of Days of Payables: ePlus inc's payables period ranged from 32.16 days to 143.11 days. A shorter payables period may indicate that the company is paying its suppliers quickly, while a longer period could suggest more extended payment terms. The trend in the payables period fluctuated but seems to have increased over the analyzed periods, reaching a high of 143.11 days at the end of March 2025.

Overall, ePlus inc's activity ratios reflect fluctuations in managing its inventory, collecting receivables, and paying suppliers. The company may need to focus on improving its inventory turnover and collection efficiency to enhance its overall liquidity and operational performance.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Looking at ePlus inc's data over the past few years, we can see fluctuations in this ratio. The ratio has ranged from a high of 122.95 in March 2022 to a low of 30.84 in June 2023. Generally, a higher fixed asset turnover ratio is preferred as it indicates that the company is effectively generating revenue from its investments in fixed assets.

On the other hand, the Total Asset Turnover ratio indicates how efficiently a company is using all its assets to generate sales. ePlus inc's Total Asset Turnover ratio has also shown variability over the years, fluctuating between 0.64 in March 2025 and 1.56 in March 2022. A higher Total Asset Turnover ratio signifies that the company is generating more sales relative to its total assets.

Analyzing these long-term activity ratios together can provide insights into how ePlus inc is managing its assets to generate sales. It is important for the company to maintain a balance between utilizing fixed assets effectively and generating sales efficiently with all assets to ensure long-term profitability and sustainability.