CDW Corp (CDW)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 6.50 | 7.11 | 8.05 | 8.14 | 8.19 | 10.16 | 12.34 | 15.13 | 18.70 | 10.77 | 8.57 | 7.74 | 7.20 | 7.45 | 8.29 | 9.24 | 8.33 | 8.24 | 8.46 | 8.28 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,284,600K ÷ $2,042,500K
= 6.50
CDW Corp's financial leverage ratio has exhibited fluctuations over the past eight quarters. The ratio decreased from 8.19 in Q4 2022 to 6.50 in Q4 2023, indicating a potential improvement in the company's ability to meet its financial obligations using debt. However, it is important to note that the ratio increased gradually from Q4 2022 to Q2 2023 before decreasing in Q4 2023. This suggests that the company may have initially taken on more debt relative to its equity, possibly for strategic growth or investment purposes.
While the decrease in the financial leverage ratio could be viewed positively as a sign of reduced reliance on debt financing, it is essential to consider the optimal level of leverage for the company's industry and growth strategy. The significant fluctuations in the ratio over the quarters raise questions about the company's capital structure and its ability to manage debt effectively.
Moreover, the current financial leverage ratio of 6.50 in Q4 2023 indicates that CDW Corp is financing its operations with a higher proportion of equity compared to debt. This may reflect a conservative approach to leverage, which could enhance the company's financial stability and risk management.
In conclusion, CDW Corp's financial leverage ratio has shown variability over the quarters, with the latest ratio suggesting a decreased reliance on debt financing. Further analysis of the company's overall financial health, capital structure, and future growth plans is recommended to assess the implications of these fluctuations in the financial leverage ratio.
Peer comparison
Dec 31, 2023