Arrow Electronics Inc (ARW)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 24,630,900 | 28,958,100 | 32,287,800 | 30,274,700 | 25,482,200 |
| Inventory | US$ in thousands | 4,709,710 | 5,187,220 | 5,319,370 | 4,201,960 | 3,287,310 |
| Inventory turnover | 5.23 | 5.58 | 6.07 | 7.20 | 7.75 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $24,630,900K ÷ $4,709,710K
= 5.23
Arrow Electronics Inc's inventory turnover has shown a decreasing trend over the past five years, declining from 7.75 in December 31, 2020 to 5.23 in December 31, 2024. This indicates that the company took longer to sell its inventory in each successive year, suggesting potential inefficiencies in managing and converting its inventory into sales. A decreasing inventory turnover ratio may imply overstocking, slow-moving inventory, or difficulty in predicting customer demand accurately. Arrow Electronics Inc should closely monitor and address factors contributing to the declining trend in inventory turnover to optimize its inventory management and improve overall operational efficiency.
Peer comparison
Dec 31, 2024