ePlus inc (PLUS)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 30.45 | 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 | 15.33 | 19.10 | 18.91 | 20.13 |
| Days of sales outstanding (DSO) | days | 105.73 | 100.80 | 104.18 | 113.33 | 88.99 | 121.53 | 100.97 | 94.48 | 86.26 | 110.35 | 100.86 | 104.22 | 91.13 | 106.21 | 85.06 | 91.84 | 86.17 | 97.60 | 88.55 | 95.63 |
| Number of days of payables | days | 68.81 | 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 | 25.28 | 39.47 | 35.48 | 37.69 |
| Cash conversion cycle | days | 67.37 | 83.43 | 88.53 | 89.47 | 94.43 | 108.42 | 122.15 | 115.71 | 91.34 | 106.08 | 104.80 | 82.87 | 61.55 | 82.42 | 75.51 | 78.31 | 76.22 | 77.23 | 71.98 | 78.08 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.45 + 105.73 – 68.81
= 67.37
The cash conversion cycle of ePlus Inc has shown fluctuations over the past few quarters. It measures the time it takes for a company to convert its investments in inventory into cash flows from sales. A shorter cash conversion cycle indicates efficiency in managing working capital.
From the data provided:
- The cash conversion cycle decreased from 108.42 days in Dec 2022 to 67.37 days in Mar 2024, indicating an improvement in working capital management.
- The cycle increased again in Dec 2023 to 83.43 days before reaching its lowest point at 61.55 days in Mar 2021.
- The company experienced its longest cash conversion cycle in Sep 2022 at 122.15 days, potentially pointing to challenges in managing inventory and collections.
- Overall, there seems to be some variability in ePlus Inc's cash conversion cycle, with periods of improvement followed by fluctuations. Analyzing the reasons behind these fluctuations could provide insights into the company's operational efficiency and working capital management strategies.
Peer comparison
Mar 31, 2024