ePlus inc (PLUS)

Liquidity ratios

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
Current ratio 1.94 1.93 1.81 1.59 1.95 1.63 1.76 1.85 1.95 1.69 1.74 1.73 1.69 1.56 1.61 1.55 1.68 1.57 1.52 1.54
Quick ratio 1.37 1.17 1.05 0.97 1.08 0.98 1.03 1.06 1.27 1.10 1.08 1.25 1.13 1.03 1.11 1.03 1.19 1.08 0.98 0.99
Cash ratio 0.39 0.23 0.12 0.13 0.18 0.13 0.16 0.16 0.34 0.19 0.12 0.21 0.28 0.16 0.34 0.28 0.22 0.14 0.13 0.09

The liquidity ratios of ePlus inc indicate the company's ability to meet its short-term obligations and manage its cash flow effectively.

- The current ratio has shown some fluctuations over the periods but generally remains above 1, ranging from 1.55 to 1.95. This suggests that ePlus inc has sufficient current assets to cover its current liabilities, providing a margin of safety.

- The quick ratio has also varied but generally appears to be healthy, staying above 1 for most periods. This ratio excludes inventory from current assets, focusing on more liquid assets to meet short-term obligations quickly. The company's ability to maintain a quick ratio above 1 indicates a strong position to meet immediate financial requirements.

- The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has shown significant variation. While the ratio has been improving in recent periods, it still fluctuates between 0.09 and 0.39, indicating ePlus inc may have some challenges in meeting its short-term obligations with cash alone.

Overall, ePlus inc's liquidity ratios demonstrate a relatively healthy liquidity position, with the current and quick ratios generally above industry standards. However, the company should keep an eye on its cash ratio and ensure it continues to improve to enhance its ability to meet short-term obligations with cash reserves.

Additional liquidity measure

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
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

The cash conversion cycle for ePlus inc has shown variability over the past several quarters. The cycle represents the time it takes for the company to convert its investments in raw materials into cash received from the sale of finished goods. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its resources into cash quickly.

From the data provided, we observe fluctuations in the cash conversion cycle for ePlus inc. The cycle ranged from a low of 61.55 days in March 2021 to a high of 122.15 days in September 2022. Generally, a decreasing trend in the cash conversion cycle is preferred as it signals improved efficiency in managing inventory, collecting receivables, and paying payables.

In the most recent quarter, ending March 31, 2024, the cash conversion cycle was 67.37 days, showing a decrease from the previous quarter which was 83.43 days. This reduction suggests that ePlus inc has been able to streamline its cash conversion process, potentially by managing its inventory levels more effectively, improving its accounts receivable collection, or extending payment terms with suppliers.

Overall, it is important for ePlus inc to continue monitoring and managing its cash conversion cycle to ensure optimal working capital management and liquidity. By implementing more efficient inventory management, credit policies, and supplier relationships, the company can further improve its cash conversion cycle and strengthen its financial position.