WESCO International Inc (WCC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,060,900 | 15,168,600 | 15,162,700 | 14,971,200 | 14,811,700 | 14,080,600 | 13,863,300 | 13,185,000 | 12,617,700 | 12,481,000 | 12,299,100 | 11,878,300 | 11,880,200 | 11,868,300 | 11,732,000 | 5,230,960 | 5,017,640 | 5,047,410 | 5,067,940 | 4,984,640 |
| 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 |
| Financial leverage ratio | 2.99 | 3.10 | 3.16 | 3.26 | 3.33 | 3.36 | 3.37 | 3.32 | 3.34 | 3.48 | 3.48 | 3.49 | 3.55 | 3.68 | 3.78 | 2.37 | 2.21 | 2.30 | 2.37 | 2.26 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,060,900K ÷ $5,037,100K
= 2.99
The financial leverage ratio of Wesco International, Inc. has exhibited a declining trend over the past several quarters, indicating an improvement in its overall financial leverage position. The ratio decreased from 3.33 in Q4 2022 to 2.99 in Q4 2023. This means that the company relied less on debt to finance its operations and investments during this period.
Furthermore, the downward trend continued through Q1-Q3 2023, with the ratio decreasing steadily to 3.10, 3.16, and 3.26, respectively. Although the ratio slightly increased in Q4 2023 to 2.99, it remained lower than the previous quarters, suggesting that Wesco International has been effectively managing its debt levels.
Overall, the declining financial leverage ratio indicates that the company has been reducing its dependence on debt to support its operations and growth, which could potentially improve its financial stability and reduce its risk of financial distress.
Peer comparison
Dec 31, 2023