Arrow Electronics Inc (ARW)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 33,107,100 | 37,124,400 | 34,477,000 | 28,673,400 | 28,916,800 |
| Receivables | US$ in thousands | 12,238,100 | 12,322,700 | 11,123,900 | 9,205,340 | 8,482,690 |
| Receivables turnover | 2.71 | 3.01 | 3.10 | 3.11 | 3.41 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $33,107,100K ÷ $12,238,100K
= 2.71
The receivables turnover ratio for Arrow Electronics Inc. has shown a decreasing trend over the past five years. In 2019, the company had a receivables turnover ratio of 3.41, indicating that it collected its accounts receivable approximately 3.41 times during that year. However, this ratio has been gradually declining since then, reaching 2.71 in 2023.
A decreasing trend in the receivables turnover ratio may suggest that the company is taking longer to collect payments from its customers, which could potentially indicate issues with credit policies or the financial health of its customers. It is important for the company to closely monitor this trend and take necessary steps to improve its accounts receivable collection efficiency.
Overall, the declining receivables turnover ratio for Arrow Electronics Inc. warrants further investigation to identify the underlying reasons and implement strategies to enhance accounts receivable management.
Peer comparison
Dec 31, 2023