ePlus inc (PLUS)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,225,300 | 2,067,720 | 1,821,020 | 1,568,320 | 1,588,400 |
| Receivables | US$ in thousands | 794,100 | 649,459 | 540,545 | 538,892 | 481,737 |
| Receivables turnover | 2.80 | 3.18 | 3.37 | 2.91 | 3.30 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,225,300K ÷ $794,100K
= 2.80
The receivables turnover of ePlus inc has shown a fluctuating trend over the past five years. The ratio decreased from 4.24 in March 2020 to 4.01 in March 2021, indicating a longer period required to collect receivables in 2021. However, there was a slight recovery in March 2022 with a ratio of 4.23, suggesting a quicker turnaround in collecting receivables compared to the previous year. In March 2023, the ratio further improved to 4.10, but then decreased to 3.45 in March 2024.
A lower receivables turnover ratio in March 2024 may indicate that ePlus inc is taking a longer time to collect receivables compared to the previous period. This could potentially be a red flag as a low turnover ratio may tie up the company's cash flow and working capital, impacting liquidity. Further analysis of the company's collection policies, credit terms, and overall efficiency in managing receivables may be warranted to address this trend.
Peer comparison
Mar 31, 2024