ePlus inc (PLUS)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 141,224 | 147,942 | 150,308 | 162,212 | 176,577 | 184,947 | 183,525 | 169,557 | 161,263 | 149,968 | 149,692 | 149,221 | 137,685 | 131,636 | 116,050 | 108,788 | 103,818 | 101,352 | 101,347 | 99,953 |
| Interest expense (ttm) | US$ in thousands | 2,362 | 2,828 | 3,511 | 3,777 | 4,324 | 4,916 | 4,621 | 4,133 | 3,504 | 2,490 | 1,907 | 1,903 | 2,088 | 1,882 | 1,787 | 2,005 | 1,855 | 2,194 | 2,523 | 2,574 |
| Interest coverage | 59.79 | 52.31 | 42.81 | 42.95 | 40.84 | 37.62 | 39.72 | 41.03 | 46.02 | 60.23 | 78.50 | 78.41 | 65.94 | 69.94 | 64.94 | 54.26 | 55.97 | 46.20 | 40.17 | 38.83 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $141,224K ÷ $2,362K
= 59.79
ePlus inc's interest coverage ratio has exhibited a generally fluctuating trend over the observation period ranging from March 31, 2020, to December 31, 2024.
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
In the given data, ePlus inc's interest coverage ratio started at a healthy level of 38.83 on March 31, 2020, and continued to show a positive trend, reaching its peak at 78.50 on June 30, 2022. This indicates the company had a strong ability to cover its interest payments during this period.
However, from September 30, 2022, the interest coverage ratio started to decline, falling to 37.62 by September 30, 2023. This downward trend continued until December 31, 2024, where the ratio slightly improved to 59.79 but still remained below the peak levels seen in 2022.
The fluctuating nature of ePlus inc's interest coverage ratio suggests potential changes in the company's financial position and ability to service its debt over time. Further analysis of the company's financial performance and debt management strategies may be necessary to fully understand the implications of these fluctuations.
Peer comparison
Dec 31, 2024