Arrow Electronics Inc (ARW)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 28,958,110 | 30,215,530 | 31,267,630 | 32,043,790 | 32,287,800 | 31,990,470 | 31,347,570 | 30,685,470 | 30,274,660 | 29,985,470 | 28,991,520 | 27,285,020 | 25,482,240 | 24,466,980 | 24,303,590 | 24,977,200 | 25,618,470 | 26,046,030 | 26,333,420 | 26,263,490 |
| Payables | US$ in thousands | 10,070,000 | 9,090,550 | 8,981,210 | 8,976,300 | 10,460,400 | 9,540,450 | 9,162,530 | 9,110,390 | 9,617,080 | 8,005,210 | 7,625,840 | 7,045,760 | 7,937,890 | 6,849,250 | 6,967,180 | 6,662,330 | 7,046,220 | 6,181,410 | 6,245,070 | 6,034,460 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $28,958,110K ÷ $10,070,000K
= 2.88
The payables turnover ratio for Arrow Electronics Inc. has shown fluctuation over the past eight quarters. It indicates how efficiently the company manages its accounts payable by paying off its suppliers.
During Q4 2023, the payables turnover ratio was 2.88, the lowest in the past eight quarters. This suggests that the company took longer to pay off its suppliers compared to previous quarters. However, in Q3 2023, the ratio improved to 3.32, indicating a more efficient management of accounts payable.
Q2 2023 and Q1 2023 saw further improvements in the payables turnover ratio to 3.48 and 3.57, respectively, reflecting a trend of paying off suppliers more swiftly. Q4 2022 recorded a ratio of 3.09, lower than the recent quarters, showing a temporary slowdown in payables turnover.
Overall, the company has demonstrated a relatively stable performance in managing its payables, with fluctuations in the ratio potentially influenced by changes in the company's payment policies, supplier relationships, or industry dynamics. Further analysis and comparison with industry averages could provide additional insights into Arrow Electronics Inc.'s efficiency in managing its accounts payable.
Peer comparison
Dec 31, 2023