ePlus inc (PLUS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 11.99 | 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 | 19.11 | 19.30 | 18.13 |
| 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 |
| Payables turnover | 5.30 | 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 | 9.25 | 10.29 | 9.68 |
| Working capital turnover | 3.61 | 3.68 | 4.00 | 4.59 | 3.87 | 4.06 | 4.10 | 4.13 | 4.16 | 4.38 | 4.68 | 4.97 | 4.93 | 5.35 | 5.43 | 5.44 | 6.04 | 6.18 | 6.65 | 6.39 |
Based on the activity ratios of ePlus inc over the provided periods, we can draw several insights into the company's operational efficiency and effectiveness in managing its working capital:
1. Inventory Turnover: ePlus inc has shown fluctuating inventory turnover ratios over the periods, ranging from 5.16 to 23.82. Generally, a higher inventory turnover indicates that the company is selling its products more quickly. The company's inventory turnover has been trending upwards recently, suggesting improved inventory management and sales efficiency.
2. Receivables Turnover: The receivables turnover ratios for ePlus inc have varied between 3.00 and 4.29. A higher turnover ratio suggests that the company is collecting its accounts receivable more efficiently. While the ratios have been somewhat inconsistent, they show a relatively stable collection performance over the periods analyzed.
3. Payables Turnover: The payables turnover ratios have ranged from 5.09 to 14.44, indicating how efficiently ePlus inc pays its suppliers and other payables. Higher ratios imply faster payment cycles, which can sometimes indicate effective cash management. The company's payables turnover has generally been volatile but has shown an increasing trend in recent periods.
4. Working Capital Turnover: ePlus inc's working capital turnover ratios have fluctuated between 3.61 and 6.65. This ratio indicates how well the company is utilizing its working capital to generate sales revenue. A higher ratio suggests better working capital management and more effective use of resources. The company's working capital turnover has generally been at healthy levels, indicating efficient operational performance.
Overall, ePlus inc's activity ratios reflect a mixed performance in managing its resources and operational processes. While there are fluctuations in some ratios, the company has shown improvements in inventory turnover and working capital turnover in recent periods, indicating enhanced efficiency in managing its assets and generating sales.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 30.45 | 49.43 | 47.13 | 54.47 | 57.28 | 58.53 | 70.70 | 64.65 | 41.61 | 42.18 | 39.91 | 23.08 | 21.74 | 24.84 | 22.61 | 29.24 | 15.33 | 19.10 | 18.91 | 20.13 |
| Days of sales outstanding (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 |
| Number of days of payables | days | 68.81 | 66.80 | 62.78 | 78.34 | 51.84 | 71.64 | 49.51 | 43.42 | 36.54 | 46.44 | 35.97 | 44.44 | 51.32 | 48.63 | 32.16 | 42.77 | 25.28 | 39.47 | 35.48 | 37.69 |
The analysis of ePlus inc's activity ratios reveals fluctuations in their operational efficiency over the past few quarters.
Days of Inventory on Hand (DOH) demonstrates the number of days the company holds inventory before selling it. We observe a decreasing trend in DOH from 58.53 days in Dec 2022 to 30.45 days in Mar 2024, indicating an improvement in inventory management efficiency.
Days of Sales Outstanding (DSO) represents the average number of days it takes for the company to collect accounts receivable. Although the DSO has shown some fluctuations, it remained relatively high around 100 days in recent quarters, suggesting that ePlus may be facing challenges in collecting payments promptly from customers.
Number of Days of Payables reveals the average number of days the company takes to pay its suppliers. The trend in payables days has been inconsistent, with fluctuations seen across different periods. The increase in days of payables can imply a slowdown in payments to suppliers, potentially indicating changes in the company's cash flow management strategies.
Overall, ePlus inc's activity ratios reflect varying levels of efficiency in managing inventory, collecting receivables, and paying suppliers. Continuous monitoring and improvement in these areas could help enhance the company's effectiveness in utilizing its resources and optimizing its working capital.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 172.04 | 509.79 | 487.57 | 414.65 | 173.28 | 412.76 | 434.52 | 343.55 | 230.19 | 225.29 | 224.60 | 214.27 | 212.28 | 199.75 | 218.18 | 198.96 | 222.06 | 218.62 | 202.33 | 204.88 |
| Total asset turnover | 1.35 | 1.36 | 1.41 | 1.30 | 1.46 | 1.27 | 1.38 | 1.48 | 1.56 | 1.37 | 1.45 | 1.51 | 1.46 | 1.41 | 1.52 | 1.48 | 1.75 | 1.62 | 1.60 | 1.60 |
The fixed asset turnover ratio for ePlus Inc has exhibited significant fluctuations over the periods under review, ranging from as low as 173.28 to as high as 509.79. This suggests varying levels of efficiency in utilizing fixed assets to generate sales revenue. The ratio indicates that, on average, the company generated $172.04 to $509.79 in sales for every dollar invested in fixed assets.
On the other hand, the total asset turnover ratio has also shown fluctuations, but to a lesser extent, with a range from 1.27 to 1.75. This ratio reflects ePlus Inc's ability to generate sales in relation to its total assets. A higher ratio indicates more efficient utilization of assets to generate revenue.
Overall, the long-term activity ratios suggest that ePlus Inc has experienced fluctuations in asset efficiency over the periods examined. It would be important to further analyze the reasons behind these fluctuations to understand the company's operational performance and potential areas for improvement.