ePlus inc (PLUS)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 164,854 | 176,561 | 188,105 | 183,087 | 167,116 | 158,570 | 144,101 | 147,255 | 148,787 | 137,617 | 131,577 | 116,173 | 108,911 | 103,341 | 100,866 | 100,861 | 98,533 | 100,782 | 94,013 | 90,478 |
| Interest expense (ttm) | US$ in thousands | 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 | 2,443 | 2,192 | 2,100 |
| Interest coverage | 43.65 | 40.83 | 38.26 | 39.62 | 40.43 | 45.25 | 57.87 | 77.22 | 78.19 | 65.91 | 69.91 | 65.01 | 54.32 | 55.71 | 45.97 | 39.98 | 38.28 | 41.25 | 42.89 | 43.08 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $164,854K ÷ $3,777K
= 43.65
The interest coverage ratio for ePlus inc has been relatively stable over the past few quarters, ranging from a low of 38.26 to a high of 78.19. This ratio indicates the company's ability to meet its interest obligations with its operating profits.
Overall, the company has a strong interest coverage, with ratios consistently above 30, indicating a healthy cushion to cover interest expenses. The high ratios seen in some quarters, such as 77.22 and 78.19, demonstrate the company's robust ability to cover its interest expenses with its earnings.
The consistency and strength of ePlus inc’s interest coverage ratios suggest that the company is effectively managing its debt and generating sufficient operating income to comfortably meet its interest payments.
Peer comparison
Mar 31, 2024