CDW Corp (CDW)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,649,900 | 1,680,900 | 1,727,100 | 1,451,200 | 1,163,200 |
| Interest expense | US$ in thousands | 214,500 | 226,600 | 235,700 | 150,900 | 154,900 |
| Interest coverage | 7.69 | 7.42 | 7.33 | 9.62 | 7.51 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,649,900K ÷ $214,500K
= 7.69
Based on the data provided, CDW Corp's interest coverage has shown a generally positive trend over the years. The interest coverage ratio measures a company's ability to meet its interest payment obligations on outstanding debt, with a higher ratio indicating a better ability to cover interest expenses.
In December 2020, CDW Corp had an interest coverage ratio of 7.51, which improved to 9.62 by December 2021, reflecting a stronger ability to cover interest costs. However, in the following years, there was a slight decline in the interest coverage ratio to 7.33 in December 2022, 7.42 in December 2023, and 7.69 in December 2024.
Overall, CDW Corp's interest coverage appears to have fluctuated within a relatively stable range, indicating that the company has been able to comfortably cover its interest expenses in most of the years analyzed. However, it would be important to closely monitor this ratio to ensure that the company maintains a healthy level of interest coverage to meet its debt obligations effectively.
Peer comparison
Dec 31, 2024