ePlus inc (PLUS)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 3,777 | 4,133 | 1,903 | 2,005 | 2,574 |
| Interest coverage | 43.65 | 40.43 | 78.19 | 54.32 | 38.28 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $164,870K ÷ $3,777K
= 43.65
The interest coverage ratio is a measure of a company's ability to pay its interest expenses with its earnings. It indicates the extent to which operating income can cover the interest expenses of the company.
ePlus inc has shown a consistent and strong interest coverage ratio over the past five years, with values of 43.65 in 2024, 40.43 in 2023, 78.19 in 2022, 54.32 in 2021, and 38.28 in 2020. This trend indicates that the company has been able to comfortably meet its interest obligations with its operating income.
The higher the interest coverage ratio, the better, as it suggests that the company is generating more than enough operating income to cover its interest expenses. ePlus inc's interest coverage ratio has been notably above 1 in all the years, indicating the company's ability to cover its interest payments without relying heavily on additional financing.
Overall, ePlus inc's interest coverage ratio over the years reflects a healthy financial position and the company's ability to manage its debt obligations effectively. It suggests that ePlus inc has sufficient earnings to service its interest payments and is less likely to face financial distress due to its interest obligations.
Peer comparison
Mar 31, 2024