Chris Leahy: Yeah, Erik, it’s a great, great question. One, we actually face here at CDW. At one point, you know, we do — we loosen the first strings. Here’s what I’d say, two things. One, there’s definitely pent up demand. Our customers are ready to start putting plans in action. Two, they’re looking to be more confident in the expectations for the rest of the year. So while there have been some more positive indicators currently around the economy, I mean, we still have elevated inflation and elevated interest rates, and they’re just merely waiting to feel more confident in where the economy is going. I hate to make it that simple, but, but frankly, it is. But we’re also equally confident of the pent up demand and the desire for our customers to get moving on those projects. I’m talking about the commercial space in particular, but get moving on those projects that they have delayed and deferred for some period of time.
Erik Woodring: Okay. That’s really helpful. Thank you, Chris. And then maybe Al, you know, clearly some puts and takes when it comes to free cash flow, obviously a bit of a changing business mix, depending on the environment that we’re in. The new kind of net income to free cash flow conversion of 80% to 90%, that’s a bit lower than it’s just been over the last two years. Realize again, puts and takes this year, but if we — if you could just address anything that we should think about that, that you’d call out this year specifically when it comes to either working capital changes, that would be helpful. But, but really longer term is there a rule of thumb that we should be thinking of for free cash flow conversion is 80% to 90% how we should think, you know, three, five years down the line? And that’s it for me. Thanks so much.
Al Miralles: Sure. Thanks, Erik. At this juncture, 80% to 90% is the rule of thumb that we would give you. As you recall, we start the years with a prudent view of what that would look like. And we’ll see how the years play out. If you look back at the last two years, we were north of 100% on a non-GAAP net income basis. That reflected, I’d say, strong cash profits, strong and diligent management of our working capital, but also the counter cyclical components, right, as growth softened a bit, if you will. So I would say the other element that I would add for 2024, Erik, is the, we don’t know exactly how the year will play out and what the pacing of business would look like. And so we try to give a little bit of space for use of working capital.
Our inventory is at very low levels. And you can look at that both on a DIO and just inventory balance dollar basis. And so, look, we just want to take a prudent view out of the gates here that we may be more active users of working capital. And certainly we’ll update you as the year progresses. And I would just finally just say that it is and will continue to be high priority for us of continue to drive cash flow, convert profits, and ultimately have the optionality in our capital decisions to deploy it.
Erik Woodring: Thanks so much.
Operator: With that, I’ll hand back to CEO Chris Leahy to end. Chris, please go ahead.
Chris Leahy: Well, thank you very much, Taylor. And let me close by recognizing the incredible dedication and hard work of our coworkers around the globe. Their ongoing commitment to serving our customers is what makes us successful. Thank you to our customers for the privilege and opportunity to help you achieve your goals. And thank you to those listening through your time and continued interest in CDW.
Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines.
