ePlus inc (PLUS)
Current ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,363,790 | 1,273,530 | 1,095,130 | 897,482 | 777,594 |
| Total current liabilities | US$ in thousands | 797,883 | 656,990 | 561,326 | 460,036 | 459,364 |
| Current ratio | 1.71 | 1.94 | 1.95 | 1.95 | 1.69 |
March 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,363,790K ÷ $797,883K
= 1.71
The current ratio, which is a liquidity ratio, is used to assess a company's ability to meet its short-term obligations with its current assets. A current ratio exceeding 1 indicates that a company has more current assets than current liabilities, suggesting good short-term financial health.
Based on the data provided for ePlus inc, the current ratio has exhibited some fluctuation over the years. In March 2021, the current ratio was 1.69, indicating that the company had $1.69 in current assets for every dollar of current liabilities. Subsequently, there was an increase in the current ratio to 1.95 in March 2022, which suggests an improvement in the company's ability to cover its short-term obligations.
The current ratio remained stable at 1.95 in March 2023 before decreasing slightly to 1.94 in March 2024. This minor decline is not a cause for major concern as it is still above 1, indicating that ePlus inc continues to have sufficient current assets to meet its current liabilities.
In March 2025, the current ratio decreased to 1.71, indicating a potential decrease in the company's short-term liquidity compared to the previous year. While this ratio is still above 1, signifying that ePlus inc can cover its short-term obligations, management may want to monitor the trend to ensure that the company maintains a healthy liquidity position.
Overall, the current ratio trend for ePlus inc demonstrates varying levels of liquidity over the years, with the company generally maintaining a ratio above 1, implying adequate ability to meet its short-term financial obligations.
Peer comparison
Mar 31, 2025