PC Connection Inc (CNXN)

Activity ratios

Short-term

Turnover 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
Inventory turnover 22.21 19.67 18.03 14.88 14.45 14.42 13.70 12.55 13.60 15.35 15.57 17.50 17.94 19.00 15.84 20.39 21.80 21.52 15.10 18.47
Receivables turnover 4.29 4.85 4.93 4.93 4.68 4.94 4.92 4.80 4.42 4.73 4.59 4.53 3.82 4.47 6.06 5.96 4.65 5.87 5.47 6.24
Payables turnover 10.46 10.58 10.39 12.41 12.97 11.90 10.98 10.85 9.96 12.40 10.07 11.91 9.47 9.04 10.62 12.70 11.53 13.72 10.21 12.45
Working capital turnover 3.95 4.12 4.40 4.67 4.86 5.04 5.21 5.24 5.19 4.87 4.88 4.76 5.01 5.21 5.60 6.15 6.03 6.21 6.34 6.55

PC Connection, Inc. demonstrated a consistent improvement in its inventory turnover ratio over the past eight quarters, showcasing efficient management of inventory levels. The company's receivables turnover ratio remained relatively stable with a slight decrease in Q4 2023 compared to the previous quarters, indicating a consistent collection of receivables.

In terms of payables turnover, PC Connection, Inc. showed a decreasing trend from Q3 2022 to Q1 2023, which reversed in Q1 and Q2 of 2023, signaling potential changes in the company's payment practices to suppliers.

The working capital turnover ratio exhibited a gradual decline over the eight quarters, implying that the company generated less revenue for each dollar of working capital employed. Overall, the activity ratios suggest that PC Connection, Inc. effectively manages its inventory, receivables, payables, and working capital, with opportunities for further optimization in managing working capital to improve efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 16.44 18.56 20.24 24.52 25.25 25.31 26.65 29.09 26.85 23.78 23.45 20.86 20.34 19.21 23.05 17.90 16.74 16.96 24.17 19.76
Days of sales outstanding (DSO) days 85.04 75.25 73.97 74.08 78.00 73.93 74.18 76.04 82.67 77.19 79.53 80.49 95.49 81.70 60.21 61.28 78.46 62.14 66.68 58.49
Number of days of payables days 34.90 34.51 35.14 29.41 28.15 30.68 33.25 33.66 36.63 29.43 36.23 30.66 38.53 40.39 34.37 28.74 31.65 26.61 35.75 29.31

Days of Inventory on Hand (DOH) measures how efficiently a company manages its inventory. A lower DOH indicates that a company is selling its inventory quickly, while a higher DOH suggests that inventory may be sitting for too long. PC Connection, Inc.'s DOH has been decreasing over the quarters, from 33.56 days in Q1 2022 to 19.38 days in Q4 2023, indicating an improvement in inventory turnover efficiency.

Days of Sales Outstanding (DSO) reflects how quickly a company collects cash from its credit sales. A lower DSO is favorable as it indicates faster cash collection. PC Connection, Inc.'s DSO has been relatively stable over the quarters, ranging from 71.28 days in Q4 2022 to 78.26 days in Q4 2023. This suggests that the company's credit management practices have been consistent.

Number of Days of Payables shows how long a company takes to pay its suppliers. A higher number of days of payables could indicate a company's favorable cash position or negotiating power with suppliers. PC Connection, Inc.'s days of payables have fluctuated, with a low of 32.67 days in Q4 2022 and a high of 41.16 days in Q2 2023. This variability could be due to changes in the company's payment terms or supplier relationships.

Overall, PC Connection, Inc. has shown positive trends in its activity ratios. The company has improved its inventory turnover efficiency, maintained stable collection practices, and managed its payables effectively over the quarters.

Long-term

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
Fixed asset turnover 50.30 50.07 51.17 52.49 52.81 53.29 52.59 50.04 47.41 45.66 43.76 40.84 42.09 41.64 41.41 44.09 43.91 45.13 46.11 48.84
Total asset turnover 2.40 2.44 2.55 2.74 2.84 2.82 2.82 2.77 2.67 2.73 2.59 2.62 2.55 2.62 2.84 3.17 3.01 3.23 3.01 3.27

PC Connection, Inc.'s long-term activity ratios demonstrate the efficiency with which the company utilizes its assets. The fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging between 50.04 and 52.81. This indicates that for every dollar invested in fixed assets, the company generates between approximately 50 to 53 times in revenue.

Furthermore, the total asset turnover ratio has also shown consistency, fluctuating between 2.40 and 2.84 over the same period. This suggests that for each dollar of total assets, the company generates between approximately 2.40 to 2.84 dollars in revenue.

Overall, both ratios indicate that PC Connection, Inc. efficiently utilizes its assets to generate revenue, with the total asset turnover ratio showing a slight increase in efficiency compared to the fixed asset turnover ratio. This trend suggests that the company is effectively managing its assets to drive sales growth and maximize profitability.