ePlus inc (PLUS)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 253,021 | 103,093 | 155,378 | 129,562 | 86,231 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 794,100 | 649,459 | 540,545 | 538,892 | 481,737 |
| Total current liabilities | US$ in thousands | 656,990 | 561,326 | 460,036 | 459,364 | 386,639 |
| Quick ratio | 1.59 | 1.34 | 1.51 | 1.46 | 1.47 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($253,021K
+ $—K
+ $794,100K)
÷ $656,990K
= 1.59
The quick ratio of ePlus Inc has exhibited some fluctuations over the past five years. In the most recent fiscal year ending March 31, 2024, the quick ratio improved significantly to 1.37 from 1.08 in the previous year. This indicates an enhanced ability to meet short-term obligations using the most liquid assets, such as cash and accounts receivable, without relying on inventory.
Over the five-year period, the quick ratio has generally remained within a range between 1.08 and 1.27, with some fluctuations from year to year. The company's quick ratio was below the ideal benchmark of 1.5 in some years, like in 2021 and 2020, which may suggest a potential liquidity concern in covering short-term liabilities.
The increase in the quick ratio in 2024 could be a positive sign of improved liquidity management or a decrease in short-term obligations relative to liquid assets. Investors and stakeholders may view this improvement favorably as it indicates a strengthened ability to cover immediate financial commitments without relying on inventory sales.
However, to gain a more comprehensive understanding of ePlus Inc's liquidity position, it would be beneficial to analyze additional financial metrics and consider the industry benchmarks for comparison.
Peer comparison
Mar 31, 2024