PC Connection Inc (CNXN)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 97,062 | 102,367 | 104,348 | 98,500 | 103,153 | 99,118 | 98,835 | 108,534 | 120,551 | 127,948 | 123,537 | 112,531 | 96,517 | 84,971 | 78,720 | 65,544 | 72,074 | 81,918 | 93,478 | 115,213 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 910,990 | 897,362 | 874,928 | 852,672 | 840,767 | 819,161 | 794,120 | 776,483 | 766,175 | 756,107 | 731,999 | 705,482 | 682,473 | 686,172 | 665,571 | 647,495 | 636,327 | 628,277 | 611,213 | 602,562 |
| Return on total capital | 10.65% | 11.41% | 11.93% | 11.55% | 12.27% | 12.10% | 12.45% | 13.98% | 15.73% | 16.92% | 16.88% | 15.95% | 14.14% | 12.38% | 11.83% | 10.12% | 11.33% | 13.04% | 15.29% | 19.12% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $97,062K ÷ ($—K + $910,990K)
= 10.65%
PC Connection Inc's return on total capital has fluctuated over the past few years. It stood at 19.12% as of March 31, 2020, showing strong performance. However, there has been a general decline in the return on total capital since then, reaching a low of 10.65% by December 31, 2024.
The decreasing trend indicates that the company may be facing challenges in generating sufficient returns relative to its total capital employed. Investors and stakeholders may want to closely monitor this metric to assess the company's ability to effectively utilize its capital resources for generating profits.
It would be beneficial for the company to analyze the factors contributing to this decline and implement strategies to improve its return on total capital in order to enhance overall financial performance and value creation for shareholders.
Peer comparison
Dec 31, 2024