PC Connection Inc (CNXN)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,048,640 | 1,040,700 | 1,021,930 | 974,116 | 953,792 | 986,257 | 975,375 | 950,740 | 932,413 | 862,279 | 877,988 | 802,851 | 858,980 | 843,716 | 791,741 | 748,983 | 776,411 | 710,355 | 753,665 | 672,344 |
| Total current liabilities | US$ in thousands | 327,965 | 339,963 | 347,305 | 318,309 | 310,517 | 352,920 | 366,883 | 369,803 | 374,632 | 293,348 | 330,494 | 274,944 | 342,260 | 338,360 | 308,207 | 277,309 | 308,923 | 257,470 | 321,235 | 258,881 |
| Current ratio | 3.20 | 3.06 | 2.94 | 3.06 | 3.07 | 2.79 | 2.66 | 2.57 | 2.49 | 2.94 | 2.66 | 2.92 | 2.51 | 2.49 | 2.57 | 2.70 | 2.51 | 2.76 | 2.35 | 2.60 |
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 fluctuations over the past eight quarters. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally seen as favorable as it indicates the company has more current assets to cover its current liabilities.
In Q4 2023, the current ratio was 3.20, which indicates the company had $3.20 in current assets for every $1 in current liabilities. This is an improvement from the previous quarter, Q3 2023, where the ratio was 3.06. This suggests that the company increased its current assets relative to its current liabilities, which can potentially enhance its short-term liquidity position.
Looking further back, we can see that the current ratio has been relatively stable, generally hovering around 3 or slightly below over the past two years. This indicates that the company has maintained a strong ability to cover its short-term obligations with its current assets during this period.
Overall, the current ratio of PC Connection, Inc. reflects a healthy liquidity position, as it consistently stays above 2. A current ratio above 1 is considered satisfactory, but a ratio above 2 is often seen as robust, indicating the company's ability to comfortably meet its short-term financial obligations.
Peer comparison
Dec 31, 2023