PC Connection Inc (CNXN)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 103,153 | 120,552 | 96,517 | 73,303 | 112,786 |
| Interest expense | US$ in thousands | — | 1,083 | 5 | 107 | 107 |
| Interest coverage | — | 111.31 | 19,303.40 | 685.07 | 1,054.07 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $103,153K ÷ $—K
= —
The interest coverage ratio for PC Connection Inc has shown significant fluctuations over the past five years. In 2019, the interest coverage ratio was 1,054.07, indicating a very strong ability to cover interest expenses with operating income. This ratio dropped to 685.07 in 2020 but remained at a high level.
In 2021, the interest coverage ratio spiked significantly to 19,303.40, which suggests an extraordinary increase in the company's ability to cover interest expenses with its operating income. However, the interest coverage ratio was not reported for the most recent year, 2023.
Overall, the trend in PC Connection Inc's interest coverage ratio indicates a historically strong ability to cover interest expenses with operating income, with occasional fluctuations and a notable spike in 2021. Further analysis of the company's financial performance and future prospects would be needed to better understand the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023