PC Connection Inc (CNXN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,299,350 | 1,188,380 | 1,099,830 | 1,083,380 | 1,015,370 |
| Total stockholders’ equity | US$ in thousands | 910,990 | 840,767 | 766,175 | 682,473 | 636,327 |
| Financial leverage ratio | 1.43 | 1.41 | 1.44 | 1.59 | 1.60 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,299,350K ÷ $910,990K
= 1.43
The financial leverage ratio of PC Connection Inc has shown a slightly decreasing trend over the years, decreasing from 1.60 in December 2020 to 1.59 in December 2021, and further to 1.44 in December 2022. This suggests that the company is relying less on debt financing compared to its equity for supporting its assets and operations. Subsequently, by December 2023, the financial leverage ratio decreased to 1.41, indicating a continued reduction in financial leverage. However, in December 2024, there was a slight uptick to 1.43.
Overall, the decreasing trend in the financial leverage ratio indicates a cautious approach towards debt management, which could be beneficial in terms of reducing financial risk and ensuring financial stability for PC Connection Inc.
Peer comparison
Dec 31, 2024