CDW Corp (CDW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,649,900 | 1,680,900 | 1,727,100 | 1,451,200 | 1,163,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,352,700 | 2,042,500 | 1,603,300 | 705,700 | 1,297,100 |
| Return on total capital | 70.13% | 82.30% | 107.72% | 205.64% | 89.68% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,649,900K ÷ ($—K + $2,352,700K)
= 70.13%
CDW Corp's return on total capital has exhibited fluctuations over the years. The return on total capital was 89.68% as of December 31, 2020, showing a substantial increase to 205.64% by December 31, 2021. This sharp increase suggests efficient use of capital resources to generate profits. In the following years, the return on total capital decreased to 107.72% as of December 31, 2022, and further dropped to 82.30% by December 31, 2023. In the most recent period, as of December 31, 2024, the return on total capital recorded was 70.13%. These variations in return on total capital could be a result of various factors such as changes in the company's capital structure, business operations, or economic conditions. Overall, analyzing the trend in return on total capital can provide insights into the company's capital efficiency and profitability.
Peer comparison
Dec 31, 2024