CDW Corp (CDW)

The solvency ratios of CDW Corp indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.

The debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.41 to 0.52. This ratio shows that on average, 42% to 52% of CDW Corp's total assets are financed by debt, with a decrease from 2021 to 2023 indicating a lower reliance on debt to fund assets.

The debt-to-capital ratio demonstrates the proportion of the company's capital structure that is financed by debt. CDW Corp's ratio has fluctuated between 0.73 and 0.91 over the period, indicating that debt accounts for 73% to 91% of its total capital.

The debt-to-equity ratio measures the extent to which the company's operations are financed by debt relative to shareholders' equity. CDW Corp's debt-to-equity ratio has shown significant variation, ranging from 2.76 to 9.72. The higher ratios in 2021 and 2023 suggest a higher reliance on debt compared to equity financing.

The financial leverage ratio reflects the company's total assets relative to shareholders' equity. CDW Corp's financial leverage ratio has ranged from 6.50 to 18.70 over the period, indicating that the company has high financial leverage, particularly in 2021. A lower ratio is generally considered more favorable as it suggests less reliance on debt to finance operations.

Overall, CDW Corp's solvency ratios suggest varying degrees of reliance on debt for financing over the years, with the company showing some fluctuations in its solvency position. It is essential for investors and stakeholders to monitor these ratios to assess the company's ability to adequately manage its debt levels and financial obligations.

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Coverage ratios

CDW Corp's interest coverage ratio has been fairly consistent over the past five years, ranging from 7.11 in 2019 to 9.40 in 2021. The interest coverage ratio indicates the company's ability to meet its interest payment obligations from its operating income. A higher interest coverage ratio suggests that the company is in a better position to cover its interest expenses with its earnings.

CDW Corp has maintained a healthy interest coverage ratio above 7.0 in every year, which indicates a strong ability to meet its interest payments. This consistent performance reflects the company's consistent profitability and earnings generation relative to its interest expenses.

Overall, CDW Corp's interest coverage ratio has remained stable and at a healthy level over the years, providing investors and lenders with confidence in the company's ability to manage its debt obligations.