CDW Corp (CDW)

Short-term

Turnover ratios

The activity ratios of CDW Corp provide insights into its efficiency in managing inventory, receivables, payables, and working capital.

1. Inventory Turnover:
CDW Corp's inventory turnover has fluctuated over the years, ranging from a low of 17.12 in March 2022 to a high of 27.09 in December 2024. Generally, a higher inventory turnover ratio indicates that the company is able to move its inventory more quickly, which is a positive sign as it reduces the risk of obsolescence and storage costs.

2. Receivables Turnover:
Unfortunately, there is no data available for CDW Corp's receivables turnover, which makes it challenging to assess how efficiently the company is collecting payments from its customers. A higher receivables turnover ratio typically suggests that the company is efficient in collecting payments from customers.

3. Payables Turnover:
Similar to receivables turnover, there is no data provided for CDW Corp's payables turnover. This ratio would have indicated how efficiently the company is managing its payments to suppliers.

4. Working Capital Turnover:
CDW Corp's working capital turnover has shown variation over the years, with values ranging from a low of 8.99 in December 2020 to a high of 25.07 in June 2024. A higher working capital turnover ratio signifies that the company is generating sales more efficiently with the capital available, which is a positive indication of effective resource utilization.

Overall, while the inventory turnover and working capital turnover ratios provide some insights into CDW Corp's operational efficiency, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's complete activity cycle.

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Average number of days

CDW Corp's Days of Inventory on Hand (DOH) ratio reflects the number of days it takes for the company to sell its average inventory. Over the analyzed period, CDW Corp's DOH ranged from a low of 13.47 days to a high of 21.32 days. Generally, a lower DOH is preferable as it indicates efficient inventory management.

The Days of Sales Outstanding (DSO) ratio, which measures how long it takes the company to collect its accounts receivable, appears to be unavailable in the provided data for CDW Corp. This ratio is typically used to assess the effectiveness of credit and collection policies.

The Number of Days of Payables ratio, which evaluates how long the company takes to pay its suppliers, is also not provided in the data for CDW Corp. This ratio is important for analyzing the company's liquidity and cash management practices.

In conclusion, based on the available information on CDW Corp's activity ratios, we can only conclusively comment on the company's inventory management efficiency through its Days of Inventory on Hand ratio.

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Long-term

CDW Corp's fixed asset turnover ratio has shown fluctuation over the years but has generally trended upwards. The company's fixed asset turnover ratio ranged from 55.63 in March 2020 to a peak of 126.85 in September 2022, indicating that the company generated a significant amount of revenue relative to its investment in fixed assets during that period.

On the other hand, CDW Corp's total asset turnover ratio has been more volatile, with a peak of 2.25 in March 2021 and a low of 1.43 in December 2024. This ratio measures the company's efficiency in generating revenue from its total assets. A lower total asset turnover ratio suggests that the company is less effective in utilizing its assets to generate sales.

In summary, CDW Corp's fixed asset turnover ratio has generally shown an increasing trend, indicating improved efficiency in utilizing its fixed assets to generate revenue. However, the company's total asset turnover ratio has been more variable, suggesting fluctuations in its ability to generate revenue from its total assets.