CDW Corp (CDW)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 13,284,600 | 12,875,300 | 12,985,900 | 12,768,100 | 13,131,500 | 13,475,600 | 13,653,100 | 13,513,800 | 13,199,400 | 9,011,600 | 8,990,900 | 9,053,500 | 9,344,700 | 9,223,700 | 8,749,500 | 8,222,400 | 7,999,400 | 7,703,100 | 7,921,900 | 7,679,500 |
| Debt-to-assets ratio | 0.38 | 0.44 | 0.44 | 0.45 | 0.45 | 0.45 | 0.47 | 0.48 | 0.51 | 0.45 | 0.43 | 0.43 | 0.41 | 0.42 | 0.44 | 0.42 | 0.41 | 0.42 | 0.41 | 0.42 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,031,800K ÷ $13,284,600K
= 0.38
The debt-to-assets ratio for CDW Corp has shown a relatively stable upward trend over the past eight quarters, starting at 0.42 in Q4 2022 and reaching 0.49 in Q1 2022. This indicates that the company has been increasing its reliance on debt to finance its operations and investments, as a higher ratio suggests a higher proportion of assets financed by debt.
While a rising debt-to-assets ratio can signal potential financial risk and leverage concerns, it is important to consider other factors such as the company's ability to generate sufficient cash flows to cover its debt obligations. Investors and creditors may closely monitor this ratio as a measure of the company's financial health and risk profile.
CDW Corp's management should carefully assess the impact of the increasing debt-to-assets ratio on its overall financial stability and consider strategies to manage its debt levels effectively to maintain a healthy balance between debt and assets in the long term.
Peer comparison
Dec 31, 2023