ePlus inc (PLUS)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 389,375 | 253,021 | 103,093 | 155,378 | 129,562 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 797,883 | 656,990 | 561,326 | 460,036 | 459,364 |
| Cash ratio | 0.49 | 0.39 | 0.18 | 0.34 | 0.28 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($389,375K
+ $—K)
÷ $797,883K
= 0.49
The cash ratio is a liquidity ratio that measures a company's ability to cover its current liabilities with its cash and cash equivalents.
ePlus inc's cash ratio has shown fluctuations over the past five years, with values ranging from 0.18 to 0.49. A higher cash ratio indicates a stronger ability to cover short-term obligations, while a lower ratio may raise concerns about liquidity.
In 2021, the cash ratio was 0.28, indicating that ePlus inc had 0.28 units of cash and cash equivalents for every dollar of current liabilities. Over the next few years, the ratio improved to 0.34 in 2022, 0.39 in 2024, and 0.49 in 2025, suggesting an increasing ability to meet short-term obligations with available cash.
However, there was a notable decline in the cash ratio to 0.18 in 2023, which may raise questions about the company's liquidity position during that period.
Overall, ePlus inc's cash ratio has shown variability but has generally improved over the years, indicating a stronger liquidity position and ability to meet its short-term obligations with cash on hand.
Peer comparison
Mar 31, 2025