PC Connection Inc (CNXN)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 840,767 | 766,175 | 682,473 | 636,327 | 597,312 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $840,767K)
= 0.00
Based on the data provided for PC Connection Inc, the debt-to-capital ratio has consistently been reported as 0.00 for the past five years (2023 to 2019). A debt-to-capital ratio of 0.00 indicates that the company has not been utilizing debt as a source of financing relative to its total capital structure. This could imply that the company has been primarily relying on equity financing to support its operations and growth initiatives during this period.
It is important to note that a debt-to-capital ratio of 0.00 does not necessarily mean that the company has no debt obligations. It could suggest that the company has a minimal level of debt compared to its total capital, or that it has been effectively managing its debt levels to maintain a conservative financial position.
Overall, the consistent reporting of a debt-to-capital ratio of 0.00 over the past five years reflects PC Connection Inc's conservative approach to debt management and its preference for utilizing equity financing in its capital structure. Investors and analysts may view this as a positive indicator of financial stability and prudent financial management practices within the company.
Peer comparison
Dec 31, 2023