WESCO International Inc (WCC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.03 | 3.03 | 3.11 | 3.12 | 2.99 | 3.11 | 3.16 | 3.26 | 3.33 | 3.36 | 3.37 | 3.32 | 3.34 | 3.48 | 3.49 | 3.49 | 3.56 | 3.69 | 3.78 | 2.38 |
WESCO International Inc's solvency ratios indicate a consistently low level of debt relative to its assets, capital, and equity throughout the reported period from March 2020 to December 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00, suggesting that the company holds minimal debt in relation to its total assets, capital structure, and shareholders' equity.
Additionally, the Financial Leverage Ratio, which reflects the proportion of debt in the company's capital structure compared to equity, shows a gradual decline from 2.38 in March 2020 to around 3.03 by December 2024. This decreasing trend indicates that WESCO International Inc has been reducing its reliance on debt financing over time, which may contribute to a more stable financial position and lower financial risk.
Overall, the solvency ratios of WESCO International Inc demonstrate a conservative approach to managing its financial obligations, with a well-maintained balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.46 | 3.37 | 3.31 | 3.36 | 3.60 | 3.89 | 4.21 | 4.62 | 4.86 | 4.91 | 4.37 | 3.81 | 3.17 | 2.43 | 2.19 | 1.78 | 1.87 | 2.46 | 3.04 | 5.18 |
Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio signifies that the company is in a better position to meet its interest payments.
Analyzing the interest coverage ratios of WESCO International Inc from March 31, 2020, to December 31, 2024, we observe a downward trend initially, with the ratio decreasing from 5.18 in March 2020 to 1.78 in March 2021. This declining trend indicates that the company's ability to cover its interest expenses weakened during this period. However, starting from June 2021, there is a gradual improvement in the interest coverage ratio, reaching 4.37 by June 30, 2022.
Throughout the following quarters up to December 31, 2024, the interest coverage ratio remains relatively stable, ranging between 3.31 and 4.91. This stability suggests that the company's earnings are sufficient to cover its interest obligations without significant fluctuations. Overall, the increasing trend in the interest coverage ratio from 2021 to 2022 followed by the stable levels in the subsequent periods indicates an improvement in WESCO International Inc's ability to meet its interest payments.