ePlus inc (PLUS)

ePlus inc has shown consistent and strong solvency ratios over the years.

The Debt-to-assets ratio, which indicates the proportion of the company's assets funded by debt, has been consistently at 0.00 over the period from March 31, 2021, to March 31, 2025. This implies that the company has not relied on debt financing to support its assets during this period.

Similarly, the Debt-to-capital ratio, which measures the percentage of the company's capital that is financed by debt, has also remained at 0.00 throughout the same period. This indicates that ePlus inc has not used debt to fund its operations or investments as a significant portion of its capital structure.

The Debt-to-equity ratio, showing the relationship between the company's debt and equity, has also been at 0.00 consistently. This suggests that the company has not taken on debt to boost its equity, maintaining a balanced capital structure without a significant debt burden.

Lastly, the Financial leverage ratio, which indicates the extent to which the company has used debt to finance its assets, has shown a slight increase from 1.91 on March 31, 2021, to 1.93 on March 31, 2025. Despite this increase, the ratio remains relatively low, indicating a conservative approach to leveraging debt for asset financing.

Overall, based on these solvency ratios, ePlus inc appears to have a strong financial position with low debt levels, indicating a conservative financial management strategy focused on maintaining a healthy balance between debt and equity.

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Coverage ratios

Based on the provided data, ePlus inc's interest coverage ratio has shown some fluctuations over the years.

As of March 31, 2021, the interest coverage ratio stood at 54.29, indicating that the company was generating over 54 times the amount required to cover its interest expenses. This high ratio suggests that ePlus inc had a strong ability to meet its interest obligations from its operating income.

By March 31, 2022, the interest coverage ratio increased further to 77.74, reflecting an even better financial position for the company. This indicates that ePlus inc had significantly improved its ability to cover interest payments compared to the previous year.

However, there was a noticeable decline in the interest coverage ratio by March 31, 2023, where it dropped to 40.43. This decrease could signal a potential challenge for the company in meeting its interest obligations from its operating earnings.

The trend continued in the following years, with the interest coverage ratio standing at 43.65 as of March 31, 2024. Although lower than the previous year, this ratio still suggests that ePlus inc was able to cover its interest expenses with a healthy margin.

Interestingly, the data shows that as of March 31, 2025, the interest coverage ratio is listed as 0.00. A ratio of zero indicates that the company's operating income was unable to cover its interest payments, which is a concerning signal for the company's financial health.

Overall, while ePlus inc exhibited strong interest coverage ratios in the earlier years, the significant drop by 2023, and the ratio hitting zero in 2025, raise concerns about the company's ability to meet its interest obligations from its operating income in the future. Further analysis and monitoring of the company's financial performance and leverage position would be crucial to assess its sustainability and financial risk.