PC Connection Inc (CNXN)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $910,990K
= 0.00
The debt-to-equity ratio of PC Connection Inc has consistently remained at 0.00 throughout the period from March 31, 2020, to December 31, 2024. This indicates that the company has not taken on any debt to finance its operations and growth relative to its equity. A debt-to-equity ratio of 0.00 usually suggests that the company relies solely on equity financing or that it has a minimal level of debt compared to its equity.
From a financial perspective, a debt-to-equity ratio of 0.00 can be seen as a positive sign, as it implies lower financial risk since the company is not burdened by substantial debt obligations. It also indicates that shareholders have a higher level of ownership in the company relative to creditors, providing them with a greater stake in the company's performance.
However, it is important to note that a low debt-to-equity ratio may also indicate missed opportunities for leveraging debt for potential growth or tax benefits. Additionally, while a low debt level can be favorable, it is crucial for companies to strike a balance between utilizing debt for strategic purposes and maintaining a healthy financial position.
Peer comparison
Dec 31, 2024