CDW Corp (CDW)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,680,900 | 1,735,200 | 1,419,000 | 1,179,200 | 1,133,600 |
| Interest expense | US$ in thousands | 226,600 | 235,700 | 150,900 | 154,900 | 159,400 |
| Interest coverage | 7.42 | 7.36 | 9.40 | 7.61 | 7.11 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,680,900K ÷ $226,600K
= 7.42
CDW Corp's interest coverage ratio has remained relatively stable over the past five years, with values ranging from 7.11 to 9.40. This ratio indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio suggests that CDW Corp is more capable of servicing its debt payments from its operating profits. The consistent values above 7 indicate that the company has generally had sufficient operating income to cover its interest expenses comfortably. However, it is important to monitor any changes in this ratio to ensure CDW Corp's continued ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023