WESCO International Inc (WCC)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,313,100 | 5,378,300 | 5,523,100 | 5,595,100 | 5,346,000 | 5,192,820 | 5,039,860 | 4,836,660 | 4,701,540 | 4,565,770 | 4,303,120 | 4,592,730 | 4,369,950 | 4,878,120 | 5,068,550 | 1,542,600 | 1,257,070 | 1,346,330 | 1,399,490 | 1,214,280 |
| Total stockholders’ equity | US$ in thousands | 5,037,100 | 4,888,200 | 4,805,600 | 4,594,300 | 4,454,200 | 4,196,820 | 4,116,790 | 3,973,400 | 3,782,520 | 3,588,480 | 3,532,270 | 3,407,060 | 3,343,720 | 3,220,860 | 3,107,400 | 2,209,170 | 2,265,480 | 2,193,120 | 2,141,080 | 2,202,360 |
| Debt-to-capital ratio | 0.51 | 0.52 | 0.53 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.56 | 0.55 | 0.57 | 0.57 | 0.60 | 0.62 | 0.41 | 0.36 | 0.38 | 0.40 | 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 of Wesco International, Inc. has shown a slight decline from 0.55 in the fourth quarter of 2022 to 0.51 in the fourth quarter of 2023. This indicates that the company has reduced its reliance on debt financing and increased the proportion of equity in its capital structure over this period.
Although there have been fluctuations in the ratio over the past eight quarters, with values ranging from 0.51 to 0.56, the overall trend suggests a relatively stable capital structure with a moderate level of debt relative to total capital. This can be seen as a positive sign of financial stability, as it indicates that Wesco International, Inc. is managing its debt levels prudently and maintaining a healthy balance between debt and equity financing.
It is important to monitor this ratio over time to ensure that the company maintains an optimal capital structure that supports its growth and profitability objectives while managing financial risk effectively.
Peer comparison
Dec 31, 2023