CDW Corp (CDW)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.23 | 1.35 | 1.30 | 1.31 | 1.33 | 1.29 | 1.30 | 1.26 | 1.27 | 1.38 | 1.44 | 1.47 | 1.53 | 1.50 | 1.47 | 1.28 | 1.24 | 1.33 | 1.28 | 1.29 |
| Quick ratio | 1.03 | 1.12 | 1.04 | 1.05 | 1.06 | 1.01 | 1.01 | 1.00 | 1.02 | 1.10 | 1.14 | 1.22 | 1.28 | 1.28 | 1.22 | 1.04 | 1.02 | 1.08 | 1.03 | 1.05 |
| Cash ratio | 0.11 | 0.09 | 0.04 | 0.06 | 0.06 | 0.07 | 0.10 | 0.07 | 0.05 | 0.06 | 0.13 | 0.24 | 0.36 | 0.33 | 0.27 | 0.06 | 0.04 | 0.05 | 0.06 | 0.09 |
The liquidity ratios of CDW Corp indicate the company's ability to meet its short-term obligations.
The current ratio has been relatively stable over the past 8 quarters, ranging from 1.23 to 1.35. This ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio above 1 indicates that CDW Corp has more current assets than current liabilities, providing a margin of safety.
The quick ratio, also known as the acid-test ratio, has also shown consistency ranging from 1.11 to 1.20. This ratio excludes inventory from current assets, providing a more conservative measure of liquidity. CDW Corp has maintained a healthy quick ratio above 1, indicating its ability to meet short-term obligations without relying on the sale of inventory.
The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. CDW Corp's cash ratio has varied from 0.14 to 0.20 over the past 8 quarters. A higher cash ratio signifies a stronger ability to settle short-term obligations with readily available cash.
Overall, CDW Corp's liquidity ratios reflect a stable and healthy financial position, with consistent ratios above industry norms indicating a strong ability to meet short-term obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 46.41 | 48.79 | 46.45 | 44.47 | 43.69 | 39.67 | 40.36 | 46.94 | 46.32 | 44.17 | 44.92 | 43.82 | 43.75 | 47.53 | 44.63 | 44.27 | 42.84 | 41.03 | 40.79 | 41.20 |
The cash conversion cycle for CDW Corp has shown fluctuations over the past eight quarters. In Q2 2022, the company had the shortest cash conversion cycle at 24.02 days, indicating that it was efficient in converting its investments in inventory and other resources into cash. However, in Q1 2022 and Q2 2023, the cash conversion cycle increased significantly to 29.51 days and 26.24 days, respectively.
Overall, CDW Corp's cash conversion cycle has been relatively stable, ranging from 24.02 days to 29.51 days over the past two years. The company should continue to monitor and manage its cash conversion cycle effectively to optimize its working capital management and liquidity position.