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

Company name
Symbol
Working capital turnover
ePlus inc
PLUS
3.02
ScanSource Inc
SCSC
4.45