PC Connection Inc (CNXN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 97,062 | 102,367 | 104,348 | 98,500 | 103,153 | 99,118 | 98,835 | 108,534 | 120,551 | 127,948 | 123,537 | 112,531 | 96,517 | 84,971 | 78,720 | 65,544 | 72,074 | 81,918 | 93,478 | 115,213 |
| Interest expense (ttm) | US$ in thousands | 0 | 9,124 | 9,124 | 9,124 | 18,248 | 9,888 | 10,209 | 10,236 | 1,128 | 365 | 44 | 17 | 1 | 107 | 124 | 129 | 221 | 217 | 262 | 441 |
| Interest coverage | — | 11.22 | 11.44 | 10.80 | 5.65 | 10.02 | 9.68 | 10.60 | 106.87 | 350.54 | 2,807.66 | 6,619.47 | 96,517.00 | 794.12 | 634.84 | 508.09 | 326.13 | 377.50 | 356.79 | 261.25 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $97,062K ÷ $0K
= —
The interest coverage ratio for PC Connection Inc experienced significant fluctuations over the period under consideration. The ratio started at a high level of 261.25 on March 31, 2020, indicating that the company's operating income was more than sufficient to cover its interest expenses.
The ratio then exhibited a generally increasing trend, reaching a peak of 794.12 on September 30, 2021. This upward trend suggests that PC Connection Inc's ability to cover its interest payments improved over time, indicating a stronger financial position.
However, there was a sudden and drastic decline in the interest coverage ratio on December 31, 2021, where the ratio skyrocketed to 96,517.00. This anomaly may be due to data reporting errors or irregularities that need to be investigated further.
Subsequently, the interest coverage ratio returned to a more normalized level, showing some fluctuations but remaining relatively stable around the latter part of the period. The ratio stood at 11.22 on September 30, 2024, indicating that the company's operating income was able to cover its interest expenses adequately.
This erratic behavior in the interest coverage ratio could reflect changes in PC Connection Inc's financial performance, capital structure, or interest expense management. Further analysis and investigation would be required to understand the underlying reasons for these fluctuations and to assess the company's overall financial health accurately.
Peer comparison
Dec 31, 2024