ePlus inc (PLUS)
Interest coverage
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 111,981 | 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 |
| Interest expense (ttm) | US$ in thousands | 2,211 | 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 |
| Interest coverage | 50.65 | 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 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $111,981K ÷ $2,211K
= 50.65
The interest coverage ratio for ePlus inc has shown a generally upward trend over the past few years, indicating the company's ability to meet its interest obligations comfortably. The ratio increased from 40.17 as of June 30, 2020, to 68.32 as of March 31, 2025, with occasional fluctuations in between. This improvement suggests that ePlus inc has been generating sufficient operating income to cover its interest expenses effectively.
The peak in the interest coverage ratio was seen in September 30, 2022, at 78.50, indicating a particularly strong ability to pay interest obligations during that period. However, there was a slight decline in the ratio towards the end of 2023 and the beginning of 2024, with the ratio hitting a low of 37.62 as of September 30, 2023. Despite this dip, the ratio managed to recover and increase in the following quarters, demonstrating the company's resilience.
Overall, the trend in ePlus inc's interest coverage ratio reflects a positive financial health with a strong ability to service its debt obligations through operating income. It is important for stakeholders to continue monitoring this ratio to ensure the company's long-term financial stability.
Peer comparison
Mar 31, 2025