Arrow Electronics Inc (ARW)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 2.23 | 2.88 | 3.09 | 3.15 | 3.21 | |
| Number of days of payables | days | 163.71 | 126.93 | 118.25 | 115.95 | 113.70 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.23
= 163.71
Based on the data provided for Arrow Electronics Inc, the number of days of payables has been steadily increasing over the years. It stood at 113.70 days as of December 31, 2020, and progressively rose to 115.95 days by December 31, 2021, 118.25 days by December 31, 2022, 126.93 days by December 31, 2023, and significantly increased to 163.71 days by December 31, 2024.
The increasing trend in the number of days of payables indicates that Arrow Electronics Inc is taking longer to pay its suppliers or vendors. This could be due to various reasons such as changes in the company's payment terms, financial constraints, negotiation power with suppliers, or strategic management of cash flow.
A longer number of days of payables may suggest that the company is utilizing its working capital more effectively by delaying payment to suppliers. However, it could also indicate potential liquidity issues if the increase is not managed efficiently.
Overall, the trend in Arrow Electronics Inc's number of days of payables reflects a strategy in managing its cash flow and relationships with suppliers, although a significant increase in this ratio should be carefully monitored for its potential impact on the company's financial health.
Peer comparison
Dec 31, 2024