WESCO International Inc (WCC)

Solvency ratios

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
Debt-to-assets ratio 0.35 0.35 0.36 0.37 0.36 0.37 0.36 0.37 0.37 0.37 0.35 0.39 0.37 0.41 0.43 0.29 0.25 0.27 0.28 0.24
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
Debt-to-equity ratio 1.05 1.10 1.15 1.22 1.20 1.24 1.22 1.22 1.24 1.27 1.22 1.35 1.31 1.51 1.63 0.70 0.55 0.61 0.65 0.55
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

Wesco International, Inc.'s solvency ratios show a relatively consistent trend over the past eight quarters. The debt-to-assets ratio has ranged from 0.35 to 0.37, indicating that between 35% and 37% of the company's total assets have been financed by debt. This suggests that Wesco International has maintained a stable level of leverage in its capital structure.

Similarly, the debt-to-capital ratio has shown a consistent range between 0.51 and 0.55 over the same period. This ratio reveals that between 51% and 55% of the company's capital has been funded by debt, indicating a moderate level of financial leverage.

The debt-to-equity ratio has displayed a gradual increase from 1.06 to 1.22, peaking in the most recent quarter. This indicates that the proportion of debt in relation to equity has been rising, which may raise concerns about the company's financial risk and ability to meet its debt obligations.

Finally, the financial leverage ratio has fluctuated between 2.99 and 3.37, reflecting the company's capital structure and its reliance on debt financing. A higher financial leverage ratio suggests that Wesco International has been using a higher proportion of debt to finance its assets, which could magnify the company's financial risks and impact its ability to withstand economic downturns.

In conclusion, while Wesco International's solvency ratios have displayed stability in some areas, the increasing trend in the debt-to-equity ratio warrants further scrutiny to ensure the company's financial health and long-term sustainability.

Coverage ratios

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
Interest coverage 3.61 3.88 4.19 4.61 4.88 4.77 4.21 3.65 2.99 2.39 2.17 1.50 1.54 2.01 2.28 4.93 5.00 5.07 5.13 5.06

The interest coverage ratio for Wesco International, Inc. has been showing a generally positive trend over the past eight quarters, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently been above 1, with values ranging from 3.61 to 4.88 during this period.

This trend suggests that Wesco International, Inc. has sufficient earnings to cover its interest expenses by a significant margin. The increasing values of the interest coverage ratio over time demonstrate the company's improving ability to service its debt and manage its interest payments effectively.

A high interest coverage ratio is generally viewed positively by investors and lenders as it indicates a lower risk of default on debt obligations. Wesco International, Inc.'s consistent and improving interest coverage ratios reflect financial stability and the company's capacity to generate enough operating income to comfortably cover its interest payments.