CDW Corp (CDW)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,658,400 | 1,684,400 | 1,680,800 | 1,659,300 | 1,680,200 | 1,687,800 | 1,675,800 | 1,699,100 | 1,729,800 | 1,669,300 | 1,589,700 | 1,527,500 | 1,465,100 | 1,421,100 | 1,352,100 | 1,262,800 | 1,184,100 | 1,130,800 | 1,133,600 | 1,150,500 |
| Interest expense (ttm) | US$ in thousands | 214,500 | 211,300 | 214,300 | 220,200 | 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 |
| Interest coverage | 7.73 | 7.97 | 7.84 | 7.54 | 7.41 | 7.25 | 7.04 | 7.16 | 7.34 | 7.60 | 8.22 | 8.92 | 9.71 | 9.83 | 9.11 | 8.28 | 7.64 | 7.24 | 7.17 | 7.24 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,658,400K ÷ $214,500K
= 7.73
The interest coverage ratio for CDW Corp has remained relatively stable over the past few years, ranging between 7.04 and 9.83. This indicates that the company's ability to cover its interest expenses with its operating income has been consistent and healthy. A higher interest coverage ratio suggests that CDW Corp is in a better position to meet its interest obligations, reflecting a lower financial risk. However, it's important to continue monitoring this ratio to ensure that the company maintains a strong financial position and can comfortably meet its debt obligations in the future.
Peer comparison
Dec 31, 2024