ePlus inc (PLUS)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.01 | 0.00 | 0.01 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.01 | 0.01 | 0.02 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.01 | 0.01 | 0.02 | 0.00 |
| Financial leverage ratio | 1.83 | 1.81 | 1.76 | 1.91 | 1.87 |
The solvency ratios of ePlus inc indicate a consistently strong financial position over the past five years. The debt-to-assets ratio has remained low, indicating that the company has very little debt relative to its total assets. Similarly, the debt-to-capital and debt-to-equity ratios have also been minimal, reflecting the company's ability to finance its operations primarily through equity rather than debt.
The financial leverage ratio, which measures the company's reliance on debt financing, has been relatively stable around the 1.8 to 1.9 range. This suggests that ePlus inc has maintained a moderate level of leverage in its capital structure, which can be beneficial for enhancing returns for shareholders while managing financial risks.
Overall, the solvency ratios of ePlus inc demonstrate a prudent approach to managing its financial obligations and capital structure, positioning the company well to weather economic uncertainties and pursue growth opportunities in the future.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 43.65 | 40.43 | 78.19 | 54.32 | 38.28 |
The interest coverage ratio for ePlus inc has shown a generally increasing trend over the past five years, indicating the company's ability to comfortably meet its interest obligations from its operating profits. The ratio has ranged from a low of 38.28 in March 2020 to a high of 78.19 in March 2022, with a notable improvement in interest coverage over this period.
In particular, the significant increase in interest coverage from 2020 to 2022 suggests that the company has become more efficient in generating operating profits to cover its interest expenses. The ratios exceeding 40 indicate that ePlus inc had more than enough operating income to cover its interest payments in each of the past five years, providing a healthy buffer against potential fluctuations in earnings.
Overall, the consistently high interest coverage ratios demonstrate ePlus inc's strong financial health and ability to service its debt obligations comfortably, which may instill confidence in creditors and investors regarding the company's financial stability.