CDW Corp (CDW)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,680,900 | 1,692,500 | 1,680,500 | 1,703,600 | 1,735,200 | 1,627,900 | 1,547,900 | 1,482,500 | 1,419,000 | 1,411,900 | 1,343,300 | 1,256,800 | 1,179,200 | 1,130,800 | 1,133,600 | 1,150,500 | 1,133,600 | 1,092,700 | 1,046,900 | 1,012,100 |
| Interest expense (ttm) | US$ in thousands | 226,600 | 232,700 | 237,900 | 237,400 | 235,700 | 219,700 | 193,500 | 171,300 | 150,900 | 144,600 | 148,400 | 152,600 | 154,900 | 156,100 | 158,200 | 159,000 | 159,400 | 158,200 | 152,500 | 149,200 |
| Interest coverage | 7.42 | 7.27 | 7.06 | 7.18 | 7.36 | 7.41 | 8.00 | 8.65 | 9.40 | 9.76 | 9.05 | 8.24 | 7.61 | 7.24 | 7.17 | 7.24 | 7.11 | 6.91 | 6.86 | 6.78 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,680,900K ÷ $226,600K
= 7.42
CDW Corp's interest coverage ratio has been relatively stable over the past eight quarters, ranging from 7.06 to 8.65. The company's interest coverage ratio indicates that it is capable of meeting its interest obligations comfortably each quarter, with a ratio consistently above 1. A higher interest coverage ratio is generally seen as a positive sign, demonstrating the company's ability to generate enough earnings to cover its interest expenses. CDW Corp's consistent interest coverage above 7 suggests a healthy financial position and the ability to service its debt obligations without much difficulty. It is important for investors and creditors since it shows the company's ability to handle its debt load effectively.
Peer comparison
Dec 31, 2023