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Owner Earnings for CDW Corp

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CDW: CDW Corp

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The comp...

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Metric Usage: Owner Earnings

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owner_earnings
Slug
number
Datatype
kmb
Format
LTM
Default Period
FY, Q, LTM, YTD
Periods Supported
Premium
Plan

Data is returned in millions. Please note, you need a Premium subscription to access data for owner_earnings.

To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

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Metrics similar to Owner Earnings in the financials category include:

  • Long-term Debt - The sum of all long term debt fields.
  • Reinsurance Payable - This item represents the premiums payable by an insurance company to another insurance company in respect of insurance ceded in order to reduce its overall risk.
  • Total Current Liabilities - The sum of all liabilities classified as current for having maturities of less than one year.
  • Net Current Asset Value (NCAV) - A calculation inspired by Benjamin Graham. Net Current Asset Value is calculated as current assets minus total liabilities.
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Owner Earnings

A measure of free cash flow made famous by Warren Buffett when he wrote about it in Berkshire Hathaway's annual report in 1986. Mr. Buffett stated tha...

Definition of Owner Earnings

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We use the owner’s earnings calculation described with Warren Buffett’s 1986 letter to shareholders.

If we think through these questions, we can gain some insights about what may be called "owner earnings." These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges such as Company N's items (1) and (4) less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))

The general formula can be summarized as follows:

(+) Net Income
(+) Depreciation & Amortization
(-) Maintenance Capital Expenditures
(-) Change in Working Capital
(=) Owner Earnings

Note, for financial companies like banks, the net working capital change is ignored given their business model.


Click the link below to download a spreadsheet with an example Owner Earnings calculation for CDW Corp below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-271.1 M228.9 M728.9 M1.627 B0400800

The chart above depicts the distribution of owner earnings for companies operating in the Information Technology sector in the Developed economic region. Over 2,400 companies were considered in this analysis, and 2,306 had meaningful values. The average owner earnings of companies in the sector is 31.915 M with a standard deviation of 156 M.

CDW Corp's Owner Earnings of 1.179 B ranks in the 98.5% percentile for the sector. The following table provides additional summary stats:

Owner Earnings In The Information Technology Sector
Economic Risk RegionDeveloped
Total Constituents2,402
Included Constituents2,306
Min-295.9 M
Max1.594 B
Median361.105 K
Mean31.915 M
Standard Deviation156 M

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