PC Connection Inc (CNXN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 103,153 | 120,552 | 96,517 | 73,303 | 112,786 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 840,767 | 766,175 | 682,473 | 636,327 | 597,312 |
| Return on total capital | 12.27% | 15.73% | 14.14% | 11.52% | 18.88% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $103,153K ÷ ($—K + $840,767K)
= 12.27%
PC Connection Inc's return on total capital has fluctuated over the past five years, with a high of 18.88% in 2019 and a low of 11.52% in 2020. The return on total capital for 2023 stands at 12.27%, indicating a slight decrease compared to the previous year. This suggests that the company may not be as efficient in generating returns from its total capital investment as it was in the prior year. However, it is still above the 10% baseline typically used as a benchmark for a company's performance.
Overall, while the return on total capital has shown some variability, PC Connection Inc has generally been able to generate a reasonable return relative to the capital invested in the business over the past five years.
Peer comparison
Dec 31, 2023