ePlus inc (PLUS)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 164,870 | 167,107 | 147,932 | 108,843 |
| Interest expense | US$ in thousands | 2,211 | 3,777 | 4,133 | 1,903 | 2,005 |
| Interest coverage | 0.00 | 43.65 | 40.43 | 77.74 | 54.29 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $2,211K
= 0.00
The interest coverage ratio for ePlus inc has displayed fluctuations over the years. As of March 31, 2021, the interest coverage ratio stood at 54.29, indicating that the company generated more than 54 times earnings before interest and taxes (EBIT) to cover its interest expenses for that period. The ratio improved significantly to 77.74 by March 31, 2022, suggesting a stronger ability to meet interest payments from operating profits.
However, there was a notable decline in the interest coverage ratio to 40.43 by March 31, 2023, which may raise concerns about the company's ability to service its debt obligations with its current earnings. This trend continued into the following year, with the ratio further dropping to 43.65 by March 31, 2024.
The most recent data point shows an interest coverage ratio of 0.00 as of March 31, 2025. A ratio of 0.00 indicates that the company's EBIT was insufficient to cover its interest expenses during that period, which raises serious red flags regarding the company's financial health and ability to meet its debt obligations.
Overall, while the historical trend of the interest coverage ratio for ePlus inc has shown variability, the recent significant decline to 0.00 as of March 31, 2025 is a cause for concern and warrants a closer examination of the company's financial position and debt management strategies.
Peer comparison
Mar 31, 2025