PC Connection Inc (CNXN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.43 | 1.43 | 1.47 | 1.36 | 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 |
PC Connection Inc has consistently maintained a very strong solvency position, as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios. These ratios have consistently remained at 0.00, reflecting the company's minimal reliance on debt financing to support its operations and growth.
The financial leverage ratio, which measures the proportion of a company's assets that are financed with debt relative to equity, has shown a decreasing trend over the years. Starting at 1.52 in March 2020, the financial leverage ratio gradually decreased to 1.43 by December 31, 2024. This indicates that the company has been reducing its reliance on debt capital and improving its financial stability over the years.
Overall, the solvency ratios of PC Connection Inc suggest a conservative capital structure and a strong financial position, which bodes well for the company's ability to weather economic downturns and meet its debt obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
PC Connection Inc's interest coverage ratio has shown significant fluctuations over the years, starting at a high of 261.25 in March 31, 2020, and steadily increasing to a peak of 794.12 in September 30, 2021. However, there was a sudden and drastic decline in December 31, 2021, with the interest coverage ratio reaching an exceptionally high value of 96,517.00, which may indicate an anomaly in the data.
Subsequently, the interest coverage ratio dropped sharply in the following periods, hitting a low of 5.65 in December 31, 2023. This fluctuation in the interest coverage ratio suggests varying levels of ability for PC Connection Inc to cover its interest expenses with its operating income. The most recent data point, in December 31, 2024, indicates a recovery in the interest coverage ratio, but the exact value is not provided.
Overall, it is crucial for stakeholders to further investigate the reasons behind such erratic changes in the interest coverage ratio to assess the company's financial health and sustainability in meeting its debt obligations.