PC Connection Inc (CNXN)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 910,990 | 840,767 | 766,175 | 682,473 | 636,327 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $910,990K)
= 0.00
The debt-to-capital ratio of PC Connection Inc has consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized any debt in its capital structure during this period. A low or zero debt-to-capital ratio may suggest that the company is financing its operations primarily through equity rather than debt. It also indicates a lower financial risk as there is no financial leverage involved in the firm's capital structure. However, it's essential to note that while a low debt-to-capital ratio reflects financial stability, it may also imply missed opportunities for leveraging debt to potentially enhance returns for shareholders. Further analysis of the company's capital structure and overall financial strategy would be needed to fully assess the implications of this consistent ratio over the years.
Peer comparison
Dec 31, 2024