WESCO International Inc (WCC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.03 | 2.99 | 3.33 | 3.34 | 3.56 |
WESCO International Inc's solvency ratios indicate a strong financial position with low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently been at 0.00 from 2020 to 2024, suggesting that the company is not heavily reliant on debt to finance its operations and investments.
The Financial leverage ratio, although showing some fluctuations over the years, remained in the range of 2.99 to 3.56 during the period under review. This indicates that the company's assets are financed primarily through equity rather than debt.
Overall, these solvency ratios reflect a conservative approach to managing debt and financial leverage, showcasing WESCO International Inc's ability to sustain its operations and investments without excessive reliance on borrowed funds.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.61 | 3.55 | 4.86 | 3.17 | 1.54 |
The interest coverage ratio of WESCO International Inc has shown a positive trend over the past five years, indicating the company's ability to meet its interest obligations. Starting at 1.54 in December 2020, the ratio improved steadily, reaching 3.17 in December 2021, 4.86 in December 2022, 3.55 in December 2023, and 3.61 in December 2024. This suggests that the company's earnings before interest and taxes have been sufficient to cover its interest expenses, with a stronger ability to do so in recent years compared to the base year. Overall, the improving interest coverage ratio reflects a positive financial performance and a reduced risk of default on debt obligations for WESCO International Inc.