ePlus inc (PLUS)
Working capital 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 |
| Total current assets | US$ in thousands | 1,273,530 | 1,095,130 | 897,482 | 777,594 | 649,798 |
| Total current liabilities | US$ in thousands | 656,990 | 561,326 | 460,036 | 459,364 | 386,639 |
| Working capital turnover | 3.61 | 3.87 | 4.16 | 4.93 | 6.04 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,225,300K ÷ ($1,273,530K – $656,990K)
= 3.61
The working capital turnover for ePlus inc has been decreasing over the past five years, indicating a declining efficiency in utilizing its working capital to generate revenue. In 2020, the company achieved a working capital turnover of 6.04, which decreased to 4.93 in 2021, 4.16 in 2022, 3.87 in 2023, and 3.61 in 2024.
A lower working capital turnover ratio suggests that the company is not efficiently leveraging its current assets and liabilities to support its sales. This could signify potential issues with inventory management, accounts receivable collection, or overall capital allocation strategies.
ePlus inc may need to assess and improve its working capital management practices to enhance operational efficiency and optimize its use of resources in generating sales. A consistent decline in working capital turnover over time may raise concerns about the company's financial performance and liquidity position.
Peer comparison
Mar 31, 2024