ePlus inc (PLUS)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,753,955 | 1,752,045 | 2,191,665 | 2,222,602 | 2,163,018 | 2,277,439 | 2,183,534 | 2,067,718 | 2,027,060 | 1,898,418 | 1,862,729 | 1,821,019 | 1,722,107 | 1,654,877 | 1,629,941 | 1,568,323 | 1,582,192 | 1,583,579 | 1,562,063 | 1,588,404 |
| Total current assets | US$ in thousands | 1,276,700 | 1,202,380 | 1,264,100 | 1,214,080 | 1,219,310 | 1,269,230 | 1,276,130 | 1,095,130 | 1,293,440 | 1,069,910 | 985,343 | 897,482 | 960,551 | 829,566 | 774,198 | 777,594 | 826,652 | 768,029 | 806,832 | 649,798 |
| Total current liabilities | US$ in thousands | 696,811 | 649,922 | 628,236 | 656,990 | 631,463 | 700,368 | 800,786 | 561,326 | 793,577 | 607,311 | 533,972 | 460,036 | 567,413 | 475,625 | 446,405 | 459,364 | 531,038 | 476,493 | 519,560 | 386,639 |
| Working capital turnover | 3.02 | 3.17 | 3.45 | 3.99 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,753,955K ÷ ($1,276,700K – $696,811K)
= 3.02
The working capital turnover of ePlus inc has shown a declining trend over the years, indicating a decreasing efficiency in utilizing working capital to generate sales revenue. The ratio was relatively high at 6.04 as of March 31, 2020, but has gradually decreased to 3.02 by December 31, 2024. A lower working capital turnover may suggest inefficiencies in managing inventory, accounts receivable, and accounts payable.
It is important for ePlus inc to closely monitor and improve its working capital turnover to ensure optimal utilization of resources and to maintain healthy liquidity levels. The company may consider implementing strategies to better manage its working capital components, such as improving inventory management, shortening accounts receivable collection periods, and negotiating favorable payment terms with suppliers. Additionally, ePlus inc should focus on improving operational efficiency and maintaining a balance between liquidity and profitability to support sustainable growth in the long term.
Peer comparison
Dec 31, 2024