ePlus inc (PLUS)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.51% | 24.75% | 25.03% | 25.31% | 25.09% |
| Operating profit margin | 6.94% | 7.11% | 8.04% | 8.09% | 6.78% |
| Pretax margin | 7.19% | 7.24% | 7.88% | 8.07% | 6.82% |
| Net profit margin | 5.22% | 5.20% | 5.77% | 5.80% | 4.74% |
ePlus inc's profitability ratios have shown mixed performance over the years.
- Gross profit margin has been relatively stable between 25.03% and 27.51%, which indicates the company has been able to maintain a consistent level of profitability after accounting for the cost of goods sold.
- Operating profit margin saw an increase from 6.78% in March 31, 2021, to a peak of 8.09% in March 31, 2022, before slightly decreasing to 6.94% in March 31, 2025. This suggests that while the company was able to improve operating efficiency in the short term, there may have been some challenges impacting profitability in the most recent period.
- Pretax margin peaked at 8.07% in March 31, 2022, but has since declined to 7.19% in March 31, 2025. This indicates that ePlus inc's profitability before accounting for tax expenses has decreased slightly over the years.
- Net profit margin has also shown a similar trend to pretax margin, with a peak of 5.80% in 2022 and a decline to 5.22% in 2025. This implies that while the company has been able to generate decent profits relative to its net sales, there may have been challenges impacting bottom-line results in recent years.
Overall, ePlus inc's profitability ratios indicate a relatively stable gross profit margin, some fluctuation in operating profit margin, and a declining trend in both pretax and net profit margins over the period analyzed. Further analysis may be required to understand the factors contributing to these trends and to assess the company's overall financial health.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.62% | 9.57% | 11.74% | 12.63% | 9.88% |
| Return on assets (ROA) | 5.73% | 7.00% | 8.44% | 9.06% | 6.91% |
| Return on total capital | 0.00% | 18.28% | 21.36% | 22.39% | 19.35% |
| Return on equity (ROE) | 11.04% | 12.84% | 15.26% | 15.98% | 13.23% |
ePlus inc's profitability ratios show a mixed performance over the last five years.
- The Operating Return on Assets (Operating ROA) improved from 9.88% in March 2021 to 12.63% in March 2022, before slightly declining to 7.62% by March 2025. This indicates that the company generated a higher operating profit relative to its assets in the earlier years, but this ratio decreased in the later years.
- Return on Assets (ROA) also followed a similar trend, increasing from 6.91% in March 2021 to 9.06% in March 2022, before decreasing to 5.73% by March 2025. This suggests that the company's overall profitability relative to its total assets improved initially but declined in the later years.
- Return on Total Capital was notably high in March 2021 at 19.35% and peaked at 22.39% in March 2022 before dropping to 0.00% in March 2025. This significant decrease in the latter years indicates a potential struggle in generating returns on the total capital employed by the company.
- Return on Equity (ROE) also exhibited a decreasing trend, starting from 13.23% in March 2021, peaking at 15.98% in March 2022, then declining to 11.04% by March 2025. This downward trend indicates a diminishing return for the company's shareholders over the years.
Overall, while there were initial improvements in profitability metrics, ePlus inc faced challenges in maintaining profitability ratios, especially concerning returns on total capital and equity in the latter years of the analyzed period.