CDW Corp (CDW)

Activity ratios

Short-term

Turnover ratios

	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	Mar 31, 2019
Inventory turnover	29.83	28.79	26.51	27.44	27.80	24.46	21.11	19.53	21.08	22.55	20.89	23.98	23.03	26.36	24.73	25.86	27.69	27.35	24.57	26.44
Receivables turnover	4.20	4.39	4.42	4.79	4.75	4.69	4.60	4.30	4.19	5.09	5.15	5.18	5.11	4.88	5.34	5.11	5.27	5.24	5.02	5.35
Payables turnover	6.92	7.77	7.30	8.11	7.89	6.88	6.49	6.44	6.28	8.35	8.41	8.71	8.38	8.89	9.50	8.83	9.22	8.69	7.79	8.95
Working capital turnover	16.75	12.86	14.86	15.09	14.54	15.38	14.00	15.48	14.96	13.80	11.86	10.68	8.93	9.32	10.80	18.01	21.25	16.55	17.53	17.96

CDW Corp's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory turnover: CDW Corp's inventory turnover has been consistently high, ranging from 21.18 to 25.03 over the past eight quarters. This indicates that the company is effectively selling and replenishing its inventory. A high inventory turnover ratio suggests strong sales and efficient inventory management.

2. Receivables turnover: The receivables turnover ratio for CDW Corp has ranged from 4.33 to 4.84 over the same period. This indicates that the company is collecting its accounts receivable efficiently. A higher receivables turnover ratio implies that CDW Corp is effectively managing its credit sales and collecting payments from customers in a timely manner.

3. Payables turnover: CDW Corp's payables turnover has been relatively stable, ranging from 4.80 to 5.74. A higher payables turnover ratio suggests that the company is paying its suppliers promptly, which may help maintain good relationships with vendors.

4. Working capital turnover: The working capital turnover ratio for CDW Corp has fluctuated between 13.00 and 16.92. This ratio reflects how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that CDW Corp is efficiently using its current assets to support sales activities.

Overall, the activity ratios of CDW Corp demonstrate efficient management of inventory, receivables, payables, and working capital to drive sales and maintain operational effectiveness.

Average number of days

		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	Mar 31, 2019
Days of inventory on hand (DOH)	days	12.24	12.68	13.77	13.30	13.13	14.92	17.29	18.69	17.32	16.19	17.47	15.22	15.85	13.84	14.76	14.12	13.18	13.35	14.86	13.80
Days of sales outstanding (DSO)	days	86.95	83.08	82.66	76.20	76.85	77.79	79.27	84.93	87.14	71.71	70.84	70.49	71.45	74.74	68.30	71.47	69.23	69.69	72.77	68.18
Number of days of payables	days	52.77	46.97	49.98	45.03	46.29	53.05	56.20	56.67	58.14	43.72	43.40	41.89	43.56	41.06	38.42	41.32	39.57	42.01	46.83	40.79

CDW Corp's activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): CDW Corp's DOH has shown a decreasing trend over the quarters, indicating that the company is selling its inventory more quickly. A lower DOH implies efficient inventory management and helps reduce holding costs and the risk of obsolescence.

2. Days of Sales Outstanding (DSO): The DSO for CDW Corp has fluctuated but generally remains within a reasonable range. A decrease in DSO signifies faster collection of accounts receivable, improving cash flow and reducing the risk of bad debts. However, the company should monitor any significant deviations to ensure timely payment collection.

3. Number of Days of Payables: CDW Corp's days of payables have fluctuated, with some quarters showing a decrease in the number of days payables are outstanding. A lower number of days of payables indicates that the company is paying its suppliers more quickly. While this can improve relationships with suppliers, it is essential to ensure that it does not strain liquidity or impact cash flow negatively.

Overall, CDW Corp's activity ratios suggest that the company is effectively managing its inventory, receivables, and payables. However, continuous monitoring and fine-tuning of these ratios are necessary to maintain optimal working capital management and overall financial health.

Long-term

	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	Mar 31, 2019
Fixed asset turnover	108.18	110.64	113.92	120.95	124.54	125.68	116.79	111.25	105.57	112.28	111.22	107.12	104.56	66.90	55.37	55.27	49.33	101.98	103.55	106.18
Total asset turnover	1.59	1.67	1.71	1.78	1.79	1.75	1.67	1.61	1.57	2.23	2.18	2.08	1.96	1.94	2.07	2.23	2.24	2.27	2.14	2.15

The long-term activity ratios of CDW Corp, specifically the fixed asset turnover and total asset turnover, provide valuable insights into the company's efficiency in utilizing its fixed assets and total assets to generate revenue.

The fixed asset turnover ratio has shown a declining trend from Q4 2022 to Q4 2023, indicating that CDW Corp is generating less revenue per dollar of fixed assets invested. This might suggest that the company's fixed assets are not being used as effectively as in previous periods to generate sales.

On the other hand, the total asset turnover ratio has displayed a slightly fluctuating pattern over the same period but has generally remained close to or slightly above 1.5. This suggests that CDW Corp is efficiently utilizing its total assets to generate revenue, as the company generates approximately $1.50 of sales for every dollar of total assets.

In summary, while CDW Corp's fixed asset turnover ratio has shown a decreasing trend, indicating potential inefficiencies in utilizing fixed assets, the total asset turnover ratio suggests that the company is effectively utilizing its total assets to generate revenue. Further analysis and consideration of the company's operational and strategic initiatives would be necessary to fully assess the implications of these long-term activity ratios on CDW Corp's overall financial performance.