Arrow Electronics Inc (ARW)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 24,630,910 | 25,010,950 | 25,999,880 | 27,401,930 | 28,958,110 | 30,215,530 | 31,267,630 | 32,043,790 | 32,287,800 | 31,990,470 | 31,347,570 | 30,685,470 | 30,274,660 | 29,985,470 | 28,991,520 | 27,285,020 | 25,482,240 | 24,466,980 | 24,303,590 | 24,977,200 |
| Inventory | US$ in thousands | 4,709,710 | 4,529,660 | 4,654,790 | 4,797,050 | 5,187,220 | 5,805,520 | 5,452,200 | 5,525,780 | 5,319,370 | 5,083,380 | 4,886,560 | 4,645,120 | 4,201,960 | 3,834,990 | 3,636,080 | 3,275,390 | 3,287,310 | 3,235,800 | 3,420,910 | 3,334,300 |
| Inventory turnover | 5.23 | 5.52 | 5.59 | 5.71 | 5.58 | 5.20 | 5.73 | 5.80 | 6.07 | 6.29 | 6.42 | 6.61 | 7.20 | 7.82 | 7.97 | 8.33 | 7.75 | 7.56 | 7.10 | 7.49 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $24,630,910K ÷ $4,709,710K
= 5.23
Arrow Electronics Inc has seen a fluctuating inventory turnover ratio over the past few years. The ratio decreased from around 7.5 in March 2020 to around 5.2 in December 2024. This downward trend suggests that the company may be taking longer to sell its inventory.
A high inventory turnover ratio indicates that the company is efficiently managing its inventory by quickly selling and restocking items. Conversely, a decreasing ratio could suggest overstocking, slow sales, or obsolete inventory.
Arrow Electronics Inc may need to review its inventory management practices, such as optimizing purchasing and sales strategies, renegotiating supplier terms, or implementing better demand forecasting, to improve its inventory turnover and overall operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024