PC Connection Inc (CNXN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,048,640 | 953,792 | 932,413 | 858,980 | 776,411 |
| Total current liabilities | US$ in thousands | 327,965 | 310,517 | 374,632 | 342,260 | 308,923 |
| Current ratio | 3.20 | 3.07 | 2.49 | 2.51 | 2.51 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,048,640K ÷ $327,965K
= 3.20
The current ratio of PC Connection Inc has shown a generally increasing trend over the past five years. As of December 31, 2023, the current ratio stands at 3.20, indicating that the company has $3.20 in current assets for every $1 in current liabilities. This suggests that PC Connection Inc is well-positioned to meet its short-term obligations and has a strong liquidity position.
Furthermore, the current ratio has surpassed the industry average of around 2, reflecting the company's efficient management of working capital and ability to cover its short-term debts comfortably. The consistent improvement in the current ratio over the years also indicates a steady growth in the company's liquidity and financial stability, which could be attributed to effective cash management practices and prudent investment decisions.
Overall, the increasing current ratio of PC Connection Inc demonstrates a healthy financial position and suggests that the company is well-equipped to handle its short-term financial commitments, which may inspire confidence among investors and creditors.
Peer comparison
Dec 31, 2023