PC Connection Inc (CNXN)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 97,062 | 103,153 | 120,552 | 96,517 | 73,303 |
| Interest expense | US$ in thousands | — | — | 1,083 | 5 | 107 |
| Interest coverage | — | — | 111.31 | 19,303.40 | 685.07 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $97,062K ÷ $—K
= —
PC Connection Inc's interest coverage ratio has fluctuated significantly over the past few years. In December 2020, the interest coverage ratio was 685.07, indicating a strong ability to cover interest expenses. However, this ratio increased substantially to 19,303.40 in December 2021, suggesting a remarkable improvement in the company's ability to cover its interest payments.
Subsequently, in December 2022, the interest coverage ratio decreased to 111.31, still indicating a healthy ability to meet interest obligations, albeit at a lower level compared to the previous year. It is noteworthy that the company did not report any specific interest coverage data for December 2023 and December 2024.
Overall, the fluctuation in PC Connection Inc's interest coverage ratio over the years indicates varying levels of financial strength and efficiency in managing its interest obligations. Investors and stakeholders should monitor future financial performance to assess the company's ability to maintain adequate interest coverage in the long run.
Peer comparison
Dec 31, 2024