Arrow Electronics Inc (ARW)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 2.88 | 3.32 | 3.48 | 3.57 | 3.09 | 3.35 | 3.42 | 3.37 | 3.15 | 3.75 | 3.80 | 3.87 | 3.21 | 3.57 | 3.49 | 3.75 | 3.64 | 4.21 | 4.22 | 4.35 | |
| Number of days of payables | days | 126.93 | 109.81 | 104.84 | 102.25 | 118.25 | 108.85 | 106.69 | 108.37 | 115.95 | 97.44 | 96.01 | 94.25 | 113.70 | 102.18 | 104.64 | 97.36 | 100.39 | 86.62 | 86.56 | 83.86 |
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 fluctuated over the past eight quarters. In Q4 2023, the company had 126.93 days of payables, which increased compared to the previous quarter but was higher than the same quarter in the previous year. This indicates that the company is taking longer to pay off its trade payables, which could potentially strain its working capital management.
Overall, the number of days of payables has been relatively high in recent quarters, ranging from 102.25 days to 126.93 days. This suggests that Arrow Electronics Inc. may be managing its payables in a way that allows it to maintain sufficient liquidity, but it may also signal potential inefficiencies in managing its payment obligations to suppliers.
It is important for the company to monitor and potentially optimize its payables management to ensure that it maintains good relationships with its suppliers while also maximizing its cash flow and working capital efficiency. Additionally, investors and stakeholders should keep an eye on the trend in the number of days of payables to assess the company's overall financial health and management of its cash flow.
Peer comparison
Dec 31, 2023