Arrow Electronics Inc (ARW)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 2.71 | 3.24 | 3.25 | — | 3.01 | — | — | — | 3.10 | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | 134.92 | 112.55 | 112.39 | — | 121.15 | — | — | — | 117.77 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.71
= 134.92
To analyze Arrow Electronics Inc.'s Days of Sales Outstanding (DSO), we look at the trend in DSO over the quarters. DSO measures the average number of days a company takes to collect revenue after a sale is made. A higher DSO signifies slower collection of accounts receivable, indicating potential liquidity issues or inefficiencies in the company's operations.
From Q1 2022 to Q4 2023, Arrow Electronics Inc.'s DSO has shown fluctuations. The DSO increased from 110.25 days in Q1 2022 to a peak of 134.92 days in Q4 2023, indicating a deterioration in the company's collections efficiency over this period.
However, in Q1 2023, there was a slight improvement in DSO compared to the preceding quarters, dropping to 105.73 days. This decrease may indicate better management of accounts receivable or timely collection efforts during that quarter.
Overall, Arrow Electronics Inc.'s DSO has exhibited volatility, with fluctuations between quarters. It is essential for the company to closely monitor its DSO and work towards optimizing its accounts receivable management to ensure efficient cash flow and healthy liquidity levels.
Peer comparison
Dec 31, 2023