CDW Corp (CDW)

Solvency ratios

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
Debt-to-assets ratio 0.38 0.44 0.44 0.45 0.45 0.45 0.47 0.48 0.51 0.45 0.43 0.43 0.41 0.42 0.44 0.42 0.41 0.42 0.41 0.42
Debt-to-capital ratio 0.71 0.76 0.78 0.79 0.79 0.82 0.85 0.88 0.91 0.83 0.79 0.77 0.75 0.76 0.79 0.79 0.77 0.78 0.78 0.78
Debt-to-equity ratio 2.46 3.13 3.55 3.66 3.66 4.60 5.86 7.29 9.57 4.82 3.73 3.34 2.97 3.12 3.66 3.86 3.42 3.49 3.48 3.51
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

CDW Corp's solvency ratios show the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has ranged between 0.42 and 0.49 over the past eight quarters, indicating that around 42% to 49% of the company's assets are financed by debt. This ratio has been relatively stable, suggesting a prudent level of leverage.

The debt-to-capital ratio, which represents the proportion of the company's capital structure funded by debt, has ranged from 0.73 to 0.88 during the same period. This ratio demonstrates that CDW Corp relies on debt for approximately 73% to 88% of its total capital, with a slight increasing trend over time.

The debt-to-equity ratio reflects the extent to which the company's operations are funded by debt compared to equity. CDW Corp's debt-to-equity ratio has fluctuated widely, ranging from 2.76 to 7.39 over the past two years. The increasing trend in this ratio indicates a higher reliance on debt financing compared to equity, which may pose higher financial risk.

The financial leverage ratio, which measures the company's total assets compared to its equity, has shown a significant increase from 6.50 to 15.13 over the same period. This suggests that CDW Corp has been taking on more debt relative to its equity, leading to higher financial leverage and potential risk.

Overall, CDW Corp's solvency ratios suggest a moderate to high level of reliance on debt for funding its operations, with an increasing trend in leverage ratios over the past two years. Investors and creditors may monitor these ratios closely to assess the company's ability to manage its debt levels and meet its financial obligations effectively.

Coverage ratios

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
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

CDW Corp's interest coverage ratio has remained relatively stable over the past eight quarters, averaging around 7.5. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT). A ratio above 1 indicates that the company generates enough earnings to cover its interest expenses.

CDW Corp's interest coverage ratio has been consistently above 7 in recent quarters, showing a strong ability to fulfill its interest obligations. The slight fluctuations seen in the interest coverage ratio over the period do not raise significant concerns, as the ratios remain comfortably above the industry benchmark of 1.5 to 2. This indicates that CDW Corp has a healthy cushion to meet its interest payments even in periods of lower profitability.

Overall, the consistent interest coverage ratio above 7 reflects CDW Corp's sound financial position and indicates a low risk of default on its debt obligations due to insolvency.