WESCO International Inc (WCC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,313,100 | 5,346,000 | 4,701,540 | 4,369,950 | 1,257,070 |
| Total stockholders’ equity | US$ in thousands | 5,037,100 | 4,454,200 | 3,782,520 | 3,343,720 | 2,265,480 |
| Debt-to-capital ratio | 0.51 | 0.55 | 0.55 | 0.57 | 0.36 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,313,100K ÷ ($5,313,100K + $5,037,100K)
= 0.51
The debt-to-capital ratio for Wesco International, Inc. has been relatively stable over the past five years. It decreased from 0.59 in 2020 to 0.51 in 2023, indicating a lower reliance on debt financing compared to total capital. This trend suggests that the company may have been actively managing its debt levels or increasing its equity component over the years.
While the ratio fluctuated slightly between 2021 and 2022 around 0.55, it remained within a similar range. Overall, the downward trend in the debt-to-capital ratio from 2020 to 2023 could signal improved financial stability and reduced financial risk for Wesco International, Inc. However, it is important to consider other aspects of the company's financial health alongside this ratio to gain a comprehensive understanding of its capital structure and debt management practices.
Peer comparison
Dec 31, 2023