Arrow Electronics Inc (ARW)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 24,630,900 | 28,958,100 | 32,287,800 | 30,274,700 | 25,482,200 |
| Payables | US$ in thousands | 11,047,500 | 10,070,000 | 10,460,400 | 9,617,080 | 7,937,890 |
| Payables turnover | 2.23 | 2.88 | 3.09 | 3.15 | 3.21 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $24,630,900K ÷ $11,047,500K
= 2.23
The payables turnover ratio for Arrow Electronics Inc has been decreasing over the years, indicating a slowdown in the rate at which the company is able to pay off its suppliers. As of December 31, 2020, the payables turnover ratio was 3.21, which means the company paid off its accounts payable approximately 3.21 times during that year. However, by December 31, 2024, the ratio had decreased to 2.23, suggesting a decline in efficiency in managing its payables.
A decreasing payables turnover ratio may indicate that the company is taking longer to settle its payables, which could potentially strain its relationships with suppliers. It is important for Arrow Electronics Inc to closely monitor and manage its payables turnover to ensure optimal working capital management and maintain good supplier relationships.
Peer comparison
Dec 31, 2024