ePlus inc (PLUS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.22 | 22.85 | 21.59 | 19.57 | 30.35 | 49.43 | 47.13 | 54.47 | 57.28 | 58.53 | 70.70 | 64.65 | 41.61 | 42.18 | 39.91 | 23.08 | 21.74 | 24.84 | 22.61 | 29.24 |
| Days of sales outstanding (DSO) | days | 108.89 | 167.57 | 166.76 | 123.43 | 130.41 | 127.87 | 137.76 | 140.04 | 114.64 | 153.30 | 121.99 | 118.53 | 108.35 | 139.81 | 131.18 | 125.96 | 125.42 | 143.36 | 115.85 | 126.70 |
| Number of days of payables | days | 109.59 | 72.25 | 64.86 | 59.41 | 68.60 | 66.80 | 62.78 | 78.34 | 51.84 | 71.64 | 49.51 | 43.42 | 36.54 | 46.44 | 35.97 | 44.44 | 51.32 | 48.63 | 32.16 | 42.77 |
| Cash conversion cycle | days | 28.51 | 118.17 | 123.49 | 83.59 | 92.17 | 110.49 | 122.12 | 116.17 | 120.09 | 140.19 | 143.17 | 139.77 | 113.42 | 135.55 | 135.11 | 104.60 | 95.84 | 119.57 | 106.30 | 113.17 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.22 + 108.89 – 109.59
= 28.51
The cash conversion cycle of ePlus Inc has shown fluctuating trends over the past few years. The company's cash conversion cycle measures the number of days it takes for the company to convert its investment in inventory and accounts receivable into cash flows from sales.
From June 30, 2020, to March 31, 2025, the cash conversion cycle has ranged from a high of 143.17 days on September 30, 2022, to a low of 49.05 days on March 31, 2025. A lower cash conversion cycle indicates that the company is able to convert its investments into cash more quickly, which can be a positive sign of efficiency in managing inventory and collecting receivables.
It is worth noting that a longer cash conversion cycle can tie up cash and may indicate inefficiencies in inventory management and collection practices. Conversely, a shorter cash conversion cycle can indicate better liquidity and working capital management.
Overall, ePlus Inc's management should continue to monitor and strive to optimize its cash conversion cycle to ensure efficient use of resources and maintain healthy cash flows.
Peer comparison
Mar 31, 2025