CDW Corp (CDW)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 2.46 | 3.66 | 9.57 | 2.97 | 3.42 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,031,800K ÷ $2,042,500K
= 2.46
The debt-to-equity ratio of CDW Corp has fluctuated over the past five years, ranging from 2.76 in 2023 to 9.72 in 2021. A high debt-to-equity ratio indicates that the company relies more on debt financing than equity, which can increase financial risk.
In 2021, the ratio was notably high at 9.72, suggesting a significant level of debt relative to equity within the company's capital structure. This could potentially signal financial distress or over-leverage. However, in the following years, the ratio decreased to more moderate levels, indicating a shift towards a more balanced mix of debt and equity financing.
The decrease in the ratio from 2021 to 2023 indicates that CDW Corp may have taken steps to reduce its debt relative to equity, which could be seen as a positive sign for long-term financial stability. It would be important for investors and stakeholders to monitor this ratio to ensure that the company maintains a healthy capital structure in the future.
Peer comparison
Dec 31, 2023