ePlus inc (PLUS)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 164,870 | 167,107 | 148,787 | 108,911 | 98,533 |
| Long-term debt | US$ in thousands | — | 9,522 | 5,792 | 12,658 | — |
| Total stockholders’ equity | US$ in thousands | 901,779 | 782,265 | 660,738 | 562,410 | 486,145 |
| Return on total capital | 18.28% | 21.11% | 22.32% | 18.94% | 20.27% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $164,870K ÷ ($—K + $901,779K)
= 18.28%
ePlus inc's return on total capital has shown a fluctuating trend over the past five years. The company's return on total capital decreased from 22.32% in March 2022 to 18.28% in March 2024. Despite this decline, the company's return on total capital remains relatively good, indicating its ability to generate profits from its total invested capital. Although the return on total capital has decreased in recent years, it is still above 18%, which suggests that the company is effectively utilizing its capital to generate returns for its investors. It is important for ePlus inc to continue monitoring and improving its return on total capital to ensure sustainable profitability and value creation for its stakeholders.
Peer comparison
Mar 31, 2024