Arrow Electronics Inc (ARW)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	28,958,100	32,287,800	30,274,700	25,482,200	25,618,500
Payables	US$ in thousands	10,070,000	10,460,400	9,617,080	7,937,890	7,046,220
Payables turnover		2.88	3.09	3.15	3.21	3.64

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $28,958,100K ÷ $10,070,000K
= 2.88

The payables turnover ratio for Arrow Electronics Inc. has shown a declining trend over the past five years, decreasing from 3.64 in 2019 to 2.88 in 2023. This suggests that the company is taking longer to pay its suppliers in recent years. A decreasing payables turnover ratio could indicate that Arrow Electronics is holding onto its accounts payable for a longer period, potentially signaling liquidity concerns or strained relationships with suppliers. It is essential for the company to monitor this trend closely and assess its impact on cash flow and working capital management.

Peer comparison

Dec 31, 2023

Company name

Symbol

Payables turnover

Arrow Electronics Inc

ARW

2.88