PC Connection Inc (CNXN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.41 | 1.44 | 1.59 | 1.60 | 1.57 |
PC Connection Inc has consistently maintained a debt-free capital structure with a debt-to-assets, debt-to-capital, and debt-to-equity ratio of 0.00 for the past five years. This indicates that the company has been financing its operations and investments without relying on external debt.
However, the financial leverage ratio has shown some slight fluctuations over the years, ranging from 1.41 in 2023 to 1.60 in 2020. The increasing trend from 2019 to 2021 suggests a higher level of financial leverage, which could indicate increased reliance on equity financing to support the company's operations and growth initiatives during those years.
Overall, the analysis of solvency ratios suggests that PC Connection Inc has maintained a conservative capital structure with minimal debt levels, which can be viewed positively in terms of financial stability and risk management.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 111.31 | 19,303.40 | 685.07 | 1,054.07 |
The interest coverage ratio for PC Connection Inc has been fluctuating significantly over the past five years. In 2019, the interest coverage ratio was 1,054.07, indicating a strong ability to cover interest payments with operating income. However, in 2020, there was a notable decrease in the ratio to 685.07, although it remained at a relatively high level.
The interest coverage ratio then experienced a significant spike in 2021 to 19,303.40, which is an unusually high level and likely indicates a significant increase in operating income relative to interest expenses. This may be attributed to various factors such as improved profitability or reduced interest expenses.
In the most recent year, the interest coverage ratio is not provided in the data, suggesting that it might be unavailable or negligible. It would be important to investigate the reasons for the missing data to gain a better understanding of the current financial health and ability of PC Connection Inc to cover its interest obligations.
Overall, the trend in the interest coverage ratio for PC Connection Inc shows inconsistent levels over the years, with significant fluctuations that warrant further analysis to assess the company's financial stability and ability to service its debt obligations.