ePlus inc (PLUS)
Working capital turnover
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,700,308 | 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 |
| Total current assets | US$ in thousands | 1,363,790 | 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 |
| Total current liabilities | US$ in thousands | 797,883 | 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 |
| Working capital turnover | 3.00 | 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 |
March 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,700,308K ÷ ($1,363,790K – $797,883K)
= 3.00
ePlus inc's working capital turnover has been showing a declining trend over the periods provided. The ratio has decreased from 5.44 on June 30, 2020, to 2.12 on March 31, 2025. This indicates that the company's efficiency in utilizing its working capital to generate sales revenue has been decreasing over time.
A high working capital turnover ratio is generally considered favorable as it signifies that the company is efficiently managing its working capital to generate revenues. Conversely, a declining trend in the ratio may point towards inefficiencies in managing working capital, which could potentially lead to cash flow problems or liquidity issues.
It would be advisable for ePlus inc to investigate the reasons behind the decreasing trend in the working capital turnover ratio and take necessary actions to improve efficiency in managing working capital, such as optimizing inventory levels, speeding up receivables collection, and managing payables effectively. Monitoring and improving this ratio can contribute to the company's overall financial health and performance.
Peer comparison
Mar 31, 2025