PC Connection Inc (CNXN)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,188,380 | 1,181,430 | 1,164,280 | 1,118,060 | 1,099,830 | 1,134,120 | 1,123,630 | 1,100,820 | 1,083,380 | 1,013,930 | 1,031,270 | 958,386 | 1,015,370 | 1,003,330 | 954,340 | 913,192 | 937,335 | 870,648 | 911,802 | 828,449 |
| Total stockholders’ equity | US$ in thousands | 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 | 597,312 | 583,144 | 560,167 | 537,592 |
| Financial leverage ratio | 1.41 | 1.44 | 1.47 | 1.44 | 1.44 | 1.50 | 1.54 | 1.56 | 1.59 | 1.48 | 1.55 | 1.48 | 1.60 | 1.60 | 1.56 | 1.52 | 1.57 | 1.49 | 1.63 | 1.54 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,188,380K ÷ $840,767K
= 1.41
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. PC Connection, Inc. has exhibited fluctuations in its financial leverage ratio over the past eight quarters. The ratio has ranged from a low of 1.41 in Q4 2023 to a high of 1.56 in Q1 2022.
Overall, the trend in PC Connection's financial leverage ratio appears to have been slightly decreasing, as it decreased from 1.54 in Q2 2022 to 1.41 in Q4 2023. This indicates that the company may be relying less on debt to fund its activities over the recent quarters.
However, it is important to note that the ratio has shown some volatility throughout the periods under review. A ratio above 1 suggests that the company has more debt than equity in its capital structure. PC Connection's financial leverage ratio has generally been above 1, indicating a higher level of debt relative to equity.
Investors and analysts should continue to monitor PC Connection's financial leverage ratio to assess the company's overall financial risk and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023