CDW Corp (CDW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,680,900 | 1,692,500 | 1,680,500 | 1,703,600 | 1,735,200 | 1,627,900 | 1,547,900 | 1,482,500 | 1,419,000 | 1,411,900 | 1,343,300 | 1,256,800 | 1,179,200 | 1,130,800 | 1,133,600 | 1,150,500 | 1,133,600 | 1,092,700 | 1,046,900 | 1,012,100 |
| Long-term debt | US$ in thousands | 5,031,800 | 5,661,500 | 5,721,000 | 5,749,900 | 5,866,400 | 6,100,000 | 6,481,400 | 6,514,800 | 6,755,800 | 4,037,700 | 3,909,200 | 3,911,100 | 3,856,300 | 3,858,600 | 3,861,600 | 3,438,500 | 3,283,200 | 3,259,000 | 3,253,300 | 3,257,700 |
| Total stockholders’ equity | US$ in thousands | 2,042,500 | 1,810,000 | 1,613,200 | 1,568,900 | 1,603,300 | 1,326,000 | 1,106,200 | 893,100 | 705,700 | 837,000 | 1,048,800 | 1,170,300 | 1,297,100 | 1,238,500 | 1,055,600 | 889,700 | 960,300 | 935,100 | 936,100 | 927,300 |
| Return on total capital | 23.76% | 22.65% | 22.91% | 23.28% | 23.23% | 21.92% | 20.40% | 20.01% | 19.02% | 28.96% | 27.09% | 24.73% | 22.88% | 22.19% | 23.05% | 26.58% | 26.71% | 26.05% | 24.99% | 24.18% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 a generally positive trend over the past eight quarters, ranging from 19.79% in Q1 2022 to 23.13% in Q1 2023. This indicates that the company has been able to generate a relatively stable return on the total capital employed in its operations. The average return on total capital over this period is approximately 21.88%.
The consistency and improvement in the return on total capital reflect CDW Corp's ability to effectively utilize its capital to generate profits. Investors and stakeholders may view this positively as it indicates the company's efficiency in generating returns on the investments made in its operations.
However, it is essential for CDW Corp to continue monitoring and managing its capital efficiency to sustain and potentially improve its return on total capital in the future.
Peer comparison
Dec 31, 2023