ePlus inc (PLUS)

Liquidity ratios

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 Mar 31, 2020
Current ratio 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 1.68
Quick ratio 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 1.47
Cash ratio 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 0.22

ePlus inc's liquidity ratios show that the company has maintained a relatively stable current ratio over the past few years, ranging from 1.55 to 2.01. The current ratio measures the company's ability to cover its short-term obligations with its current assets. ePlus inc's current ratio indicates that it has sufficient current assets to cover its current liabilities.

In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, ePlus inc has shown some fluctuations, ranging from 1.17 to 1.74. The quick ratio indicates the company's ability to meet its short-term obligations without relying on the sale of inventory.

Looking at the cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents in the numerator, ePlus inc has shown improvements over the years, with the ratio increasing from 0.12 to 0.56. This suggests that the company has been able to build up its cash reserves, which can be important in times of financial distress or for taking advantage of opportunities that require immediate cash outlays.

Overall, ePlus inc's liquidity ratios indicate that the company has maintained a strong position in terms of its ability to meet its short-term obligations and that it has been prudent in managing its liquidity over the years.

Additional liquidity measure

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 Mar 31, 2020
Cash conversion cycle days 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 95.84 119.57 106.30 113.17 100.74

The cash conversion cycle (CCC) of ePlus inc has shown fluctuations over the periods analyzed. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

From March 31, 2020, to December 31, 2020, the CCC increased from 100.74 days to 119.57 days, indicating a longer period needed to convert investments into cash. This trend continued into the first half of 2021, with a reduction in the CCC to 95.84 days, suggesting an improvement in efficiency. However, the CCC increased again in the following quarters, reaching 143.17 days by September 30, 2022.

From March 31, 2023, to December 31, 2024, the CCC fluctuated within a range of approximately 23 to 35 days, indicating variability in the company's ability to manage its working capital effectively. The lowest CCC was recorded on June 30, 2024, at 83.59 days, while the highest CCC was on September 30, 2022, at 143.17 days.

Overall, variations in the CCC of ePlus inc suggest fluctuations in the efficiency of the company's operations and working capital management over the period analyzed. Further analysis of the underlying factors driving these changes would provide more insights into the company's financial performance and operational effectiveness.