Arrow Electronics Inc (ARW)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 2.88 | 3.09 | 3.15 | 3.21 | 3.64 | |
| Number of days of payables | days | 126.93 | 118.25 | 115.95 | 113.70 | 100.39 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.88
= 126.93
The number of days of payables for Arrow Electronics Inc. has shown a consistent increasing trend over the past five years. In particular, the number of days of payables has increased from 100.39 days in 2019 to 126.93 days in 2023. This indicates that Arrow Electronics is taking longer to pay off its suppliers and vendors.
This trend suggests that Arrow Electronics may be managing its cash flow by delaying payments to suppliers, which can be a strategy to preserve cash for other uses or to take advantage of any available discounts for early payments. However, an excessively long number of days of payables could potentially strain relationships with suppliers if not managed carefully.
Overall, monitoring the trend in the number of days of payables is important to assess Arrow Electronics' liquidity management and vendor relationships, as well as its ability to effectively manage working capital.
Peer comparison
Dec 31, 2023