CDW Corp (CDW)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,680,900 | 1,735,200 | 1,419,000 | 1,179,200 | 1,133,600 |
| Long-term debt | US$ in thousands | 5,031,800 | 5,866,400 | 6,755,800 | 3,856,300 | 3,283,200 |
| Total stockholders’ equity | US$ in thousands | 2,042,500 | 1,603,300 | 705,700 | 1,297,100 | 960,300 |
| Return on total capital | 23.76% | 23.23% | 19.02% | 22.88% | 26.71% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,680,900K ÷ ($5,031,800K + $2,042,500K)
= 23.76%
CDW Corp's return on total capital has shown fluctuations over the past five years, ranging from 18.76% to 26.50%. The company achieved its highest return on total capital in 2019 at 26.50%, indicating efficient utilization of its total capital to generate profits. However, there was a slight dip in 2021 with a return of 18.76%, before rebounding in 2022 and 2023 to 23.06% and 21.87%, respectively. This suggests some variability in the company's ability to generate returns relative to its total capital base. Overall, CDW Corp has maintained relatively strong performance in terms of return on total capital, which is a key indicator of the company's profitability and efficiency in capital allocation.
Peer comparison
Dec 31, 2023