ePlus inc (PLUS)

Liquidity ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Current ratio 1.71 1.83 1.85 2.01 1.85 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
Quick ratio 1.12 1.52 1.52 1.74 1.59 1.43 1.35 1.17 1.34 1.20 1.21 1.43 1.51 1.35 1.37 1.47 1.46 1.33 1.39 1.32
Cash ratio 0.49 0.36 0.29 0.56 0.39 0.23 0.12 0.13 0.18 0.13 0.16 0.29 0.34 0.19 0.12 0.21 0.28 0.16 0.34 0.28

ePlus inc's liquidity ratios show a consistent improvement over the past few years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, increased from 1.55 as of June 30, 2020, to 2.01 as of June 30, 2024. This indicates that ePlus inc has been able to maintain a healthy level of current assets relative to its current liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited a positive trend, rising from 1.32 on June 30, 2020, to 1.12 on March 31, 2025. This suggests that ePlus inc has a strong ability to meet its short-term obligations without relying on inventory, which can sometimes be difficult to convert into cash quickly.

Furthermore, the cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, also saw an improvement from 0.28 on June 30, 2020, to 0.49 on March 31, 2025. This indicates that ePlus inc has been building up its cash reserves, providing a strong financial cushion in case of unexpected events or disruptions.

Overall, ePlus inc's liquidity ratios demonstrate a solid financial position with improving liquidity levels, suggesting that the company has the ability to meet its short-term obligations and operate its business efficiently.

Additional liquidity measure

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cash conversion cycle days 28.51 118.17 123.49 83.59 92.17 110.49 122.12 116.17 120.09 140.19 143.17 139.77 113.42 135.55 135.11 104.60 95.84 119.57 106.30 113.17

The cash conversion cycle of ePlus inc has fluctuated over the period under review. It measures the time taken to convert raw materials into cash inflows from customers, taking into account the company's days inventory outstanding, days sales outstanding, and days payables outstanding.

From June 30, 2020, to December 31, 2021, the cash conversion cycle showed some volatility, ranging from 113.17 days to 135.55 days. This indicates that the company's cash was tied up in operations for an extended period before being converted into cash inflows.

Subsequently, there was a slight improvement in the cash conversion cycle, with a decrease seen in the March 31, 2022, quarter to 113.42 days. However, this was followed by an increase in the cycle to 143.17 days by September 30, 2022, suggesting potential challenges in managing working capital efficiently.

From December 31, 2022, to March 31, 2025, the cash conversion cycle displayed a downward trend, reaching a low of 49.05 days by March 31, 2025. This significant improvement indicates that the company may have enhanced its inventory management, sales collection, or payables management processes.

Overall, analyzing the cash conversion cycle of ePlus inc reveals fluctuations in working capital management efficiency over time, with signs of improvement in recent periods. Further analysis and monitoring of the cash conversion cycle will be crucial to assess the company's operational and financial performance in the future.