ePlus inc (PLUS)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,653,470 | 1,414,830 | 1,166,200 | 1,076,780 | 909,113 |
| Total stockholders’ equity | US$ in thousands | 901,779 | 782,265 | 660,738 | 562,410 | 486,145 |
| Financial leverage ratio | 1.83 | 1.81 | 1.76 | 1.91 | 1.87 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,653,470K ÷ $901,779K
= 1.83
The financial leverage ratio of ePlus inc has ranged from 1.76 to 1.91 over the past five years. A higher financial leverage ratio indicates that a company relies more on debt financing, while a lower ratio suggests a greater reliance on equity. ePlus inc's increasing trend in the financial leverage ratio from 1.76 in 2022 to 1.91 in 2021 could imply a shift towards more debt financing during that period. However, the slight decrease to 1.83 in 2024 may suggest a potential effort to reduce debt levels or a change in the capital structure. Overall, monitoring changes in the financial leverage ratio can provide insights into the company's use of debt to finance its operations and investments.
Peer comparison
Mar 31, 2024