PC Connection Inc (CNXN)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $840,767K
= 0.00
Based on the data provided for PC Connection Inc, the debt-to-equity ratio has consistently been at 0.00 for the last five years, from 2019 to 2023. A debt-to-equity ratio of 0.00 indicates that the company has not utilized any debt to finance its operations and growth, relying solely on equity financing. This suggests that the company has a conservative financial structure with a low level of financial leverage.
Not having any debt means that the company does not have interest expenses to pay, which can be beneficial in terms of financial stability and risk management. However, it also indicates that the company may not be taking advantage of potential tax benefits associated with debt financing, and it might be missing out on opportunities to leverage borrowed funds to accelerate growth.
Overall, while a debt-to-equity ratio of 0.00 signifies financial prudence and a strong equity base, it is essential to consider the company's overall financial strategy and objectives in order to determine whether this conservative approach is optimal for its long-term success.
Peer comparison
Dec 31, 2023