Arrow Electronics Inc (ARW)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 2.14 | 2.43 | 2.73 | 2.83 | 2.71 | 3.24 | 3.25 | — | 3.01 | — | — | — | 3.10 | — | — | — | — | — | — | — | |
| DSO | days | 170.33 | 150.24 | 133.91 | 129.03 | 134.92 | 112.55 | 112.39 | — | 121.15 | — | — | — | 117.77 | — | — | — | — | — | — | — |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.14
= 170.33
Based on the data provided for Arrow Electronics Inc, the Days Sales Outstanding (DSO) is a measure of how efficiently the company is able to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, while a higher DSO suggests that it takes the company longer to collect on its sales.
From December 31, 2021, to December 31, 2024, the DSO for Arrow Electronics Inc has increased steadily. The DSO has risen from 117.77 days in December 2021 to 170.33 days in December 2024. This indicates that the company is taking longer to collect its accounts receivable over time, which could potentially signal issues with cash flow or credit management.
Furthermore, the DSO has experienced fluctuations within each year, such as a decrease in June 2023 to 112.39 days followed by a slight increase in September 2023 to 112.55 days. However, by December 2023, the DSO had jumped significantly to 134.92 days, showing variability in the company's collection efficiency.
Overall, the increasing trend in DSO over the years and the fluctuations within each year suggest that Arrow Electronics Inc may be facing challenges in collecting payments from its customers promptly, which could impact its financial performance and liquidity position going forward.
Peer comparison
Dec 31, 2024