ePlus inc (PLUS)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 253,021 | 103,093 | 155,378 | 129,562 | 86,231 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 656,990 | 561,326 | 460,036 | 459,364 | 386,639 |
| Cash ratio | 0.39 | 0.18 | 0.34 | 0.28 | 0.22 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($253,021K
+ $—K)
÷ $656,990K
= 0.39
The cash ratio of ePlus inc has been fluctuating over the past five years. In the most recent period ending March 31, 2024, the cash ratio stood at 0.39, indicating that the company had $0.39 in cash and cash equivalents available for every $1 of current liabilities. This represents an improvement compared to the previous year when the cash ratio was 0.18.
Looking back further, the cash ratio was 0.34 in 2022, 0.28 in 2021, and 0.22 in 2020. These variations suggest that ePlus inc has been managing its liquidity position differently from year to year.
A cash ratio above 1.0 would typically indicate that a company could cover all its current liabilities with its cash and cash equivalents alone. With ePlus inc's cash ratio consistently below 1.0 over the years, it suggests that the company may have relied on sources other than cash to meet its short-term obligations.
Overall, while the improved cash ratio in 2024 is a positive sign for ePlus inc's liquidity position, it is essential for the company to continue monitoring and managing its cash levels effectively to ensure it can meet its financial obligations in a sustainable manner.
Peer comparison
Mar 31, 2024