ePlus inc (PLUS)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.75% | 25.03% | 25.31% | 25.09% | 24.63% |
| Operating profit margin | 7.11% | 8.04% | 8.09% | 6.78% | 6.00% |
| Pretax margin | 7.24% | 7.88% | 8.07% | 6.82% | 6.04% |
| Net profit margin | 5.20% | 5.77% | 5.80% | 4.74% | 4.35% |
ePlus inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has ranged between 24.63% and 25.31%, with a slight decrease to 24.75% in 2024. This metric indicates that the company is effectively managing its production costs.
The operating profit margin has also fluctuated, ranging from 6.00% to 8.09% over the same period. Although it decreased to 7.11% in 2024, this ratio suggests that ePlus inc is efficiently generating profits from its core operations.
Similarly, the pretax margin has varied between 6.04% and 8.07%, with a decrease to 7.24% in 2024. This ratio reflects the company's ability to generate profits before accounting for taxes.
The net profit margin, which accounts for all expenses including taxes, has fluctuated between 4.35% and 5.80%. In 2024, the net profit margin decreased to 5.20%. This indicates that ePlus inc is experiencing a decline in bottom-line profitability after accounting for all expenses.
Overall, while ePlus inc has demonstrated consistent gross profit margins and relatively stable operating and pretax margins, there has been a decline in net profit margin in 2024. This highlights the importance for the company to effectively manage expenses to improve overall profitability.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.57% | 11.74% | 12.63% | 9.88% | 10.48% |
| Return on assets (ROA) | 7.00% | 8.44% | 9.06% | 6.91% | 7.60% |
| Return on total capital | 18.28% | 21.36% | 22.39% | 19.35% | 20.27% |
| Return on equity (ROE) | 12.84% | 15.26% | 15.98% | 13.23% | 14.21% |
ePlus inc's profitability ratios show a consistent trend of strong performance over the past five years. The Operating return on assets (Operating ROA) decreased from 11.74% in 2023 to 9.57% in 2024, indicating a decline in the company's ability to generate operating income from its assets. However, the Operating ROA remained above 9% in each year, suggesting that the company efficiently utilizes its assets to generate operating profits.
The Return on assets (ROA) also decreased from 8.44% in 2023 to 7.00% in 2024. This ratio indicates the company's ability to generate profits from its total assets. Despite the decrease in ROA, ePlus inc continued to generate positive returns on its assets in 2024.
The Return on total capital shows a similar trend, with a decrease from 21.11% in 2023 to 18.28% in 2024. This ratio measures the company's ability to generate returns from all sources of capital employed in the business. The consistent levels above 18% suggest that ePlus inc effectively generates returns on the total capital invested in the business.
Finally, the Return on equity (ROE) decreased from 15.26% in 2023 to 12.84% in 2024, reflecting a decline in the company's ability to generate returns for its equity shareholders. However, the ROE remained above 12% in 2024, indicating that ePlus inc continues to create value for its shareholders despite the decrease in profitability.
Overall, ePlus inc's profitability ratios demonstrate a solid performance over the years, despite some declines in 2024. The company exhibits efficient asset utilization, effective profitability from total capital, and value creation for its equity shareholders. Ongoing monitoring of these ratios will be important to assess the company's financial health and performance in the future.