Arrow Electronics Inc (ARW)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 25,618,470 | 26,046,030 | 26,333,420 | 26,263,490 |
| Inventory | US$ in thousands | 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 | 3,477,120 | 3,503,480 | 3,596,610 | 3,734,900 |
| Inventory turnover | 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 | 7.37 | 7.43 | 7.32 | 7.03 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $28,958,110K ÷ $5,187,220K
= 5.58
Arrow Electronics Inc.'s inventory turnover ratio has shown a decreasing trend over the past four quarters. In Q4 2023, the inventory turnover ratio was 5.58, which indicates that the company's inventory turned over approximately 5.58 times during the quarter. This was a decrease from the previous quarter Q3 2023, where the ratio was 5.20.
Although the inventory turnover ratio has been fluctuating between 5.20 and 6.42 over the past eight quarters, it suggests that Arrow Electronics Inc. is managing its inventory efficiently. A higher inventory turnover ratio typically indicates that the company is selling its inventory quickly and efficiently. The decreasing trend may indicate a slower rate of sales relative to the level of inventory, which could potentially lead to excess or obsolete inventory if not managed effectively.
Overall, further analysis of Arrow Electronics Inc.'s inventory management practices and sales strategies may be warranted to assess the factors influencing the fluctuations in the inventory turnover ratio.
Peer comparison
Dec 31, 2023
Dec 31, 2023