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

Company name
Symbol
Financial leverage ratio
PC Connection Inc
CNXN
1.43
Amazon.com Inc
AMZN
2.19
CDW Corp
CDW
6.50
Chewy Inc
CHWY
6.25
Insight Enterprises Inc
NSIT
3.62