Arrow Electronics Inc (ARW)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 24,630,910 | 25,010,950 | 25,999,880 | 27,401,930 | 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 |
| Payables | US$ in thousands | 11,047,500 | 9,392,390 | 8,770,860 | 8,940,310 | 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 |
| Payables turnover | 2.23 | 2.66 | 2.96 | 3.06 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $24,630,910K ÷ $11,047,500K
= 2.23
Arrow Electronics Inc's payables turnover ratio has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The payables turnover ratio indicates how many times a company pays off its accounts payable during a specific period.
The payables turnover ratio has ranged from a high of 3.87 in March 31, 2021, to a low of 2.23 in December 31, 2024. This variability suggests that Arrow Electronics Inc has been managing its accounts payable differently over time.
A higher payables turnover ratio typically indicates that the company is paying off its suppliers more quickly, which could be a sign of strong liquidity or favorable relationships with suppliers. Conversely, a lower ratio may suggest that the company is taking longer to pay off its suppliers, which could indicate liquidity challenges or negotiation tactics with suppliers.
Overall, Arrow Electronics Inc's payables turnover has slightly decreased over the period from 2020 to 2024, indicating a potential lengthening of the time taken to pay off its accounts payable. Further analysis would be needed to understand the factors driving these fluctuations and to assess the impact on the company's financial health and working capital management.
Peer comparison
Dec 31, 2024