CDW Corp (CDW)

CDW Corp's solvency ratios paint a picture of a company with very low levels of debt relative to its assets, capital, and equity over the five-year period from December 31, 2020, to December 31, 2024. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all stand at 0.00% consistently throughout this period, indicating that the company relies minimally on debt financing to support its operations and growth.

However, it is important to note that the financial leverage ratio, which measures the extent to which a company is using debt to support its operations, shows some fluctuations over the same period. The ratio peaked at 18.70% on December 31, 2021, suggesting a temporary increase in the company's reliance on debt that year. Subsequently, it decreased to more moderate levels, indicating a more stable financial structure in the following years.

Overall, CDW Corp's consistently low debt ratios demonstrate a conservative approach to managing its financial obligations and highlight its ability to maintain a strong financial position with limited dependence on external debt funding.

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Coverage ratios

CDW Corp's interest coverage ratio has shown a generally positive trend over the past five years. The ratio increased from 7.51 in December 31, 2020, to 9.62 in December 31, 2021, reflecting the company's improved ability to meet its interest obligations with its earnings before interest and taxes. However, there was a slight decline in the ratio to 7.33 in December 31, 2022, followed by relatively stable figures ranging from 7.42 to 7.69 in the subsequent years. Overall, the company has maintained a healthy interest coverage ratio above 1, indicating that it has sufficient earnings to cover its interest expenses comfortably. This trend suggests that CDW Corp has been effectively managing its debt and maintaining financial stability.