Arrow Electronics Inc (ARW)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 27,923,330 | 28,489,610 | 29,673,310 | 31,294,960 | 33,107,130 | 34,580,990 | 35,840,400 | 36,786,720 | 37,124,410 | 36,817,470 | 36,063,430 | 35,165,220 | 34,477,020 | 33,915,130 | 32,634,000 | 30,677,860 | 28,673,360 | 27,557,360 | 27,404,220 | 28,142,280 |
| Receivables | US$ in thousands | 13,031,000 | 11,726,600 | 10,886,500 | 11,062,600 | 12,238,100 | 10,663,200 | 11,035,900 | — | 12,322,700 | — | — | — | 11,123,900 | — | — | — | — | — | — | — |
| Receivables turnover | 2.14 | 2.43 | 2.73 | 2.83 | 2.71 | 3.24 | 3.25 | — | 3.01 | — | — | — | 3.10 | — | — | — | — | — | — | — |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $27,923,330K ÷ $13,031,000K
= 2.14
Arrow Electronics Inc's receivables turnover ratio measures how efficiently the company is able to collect cash from its customers in a given period. Looking at the data provided, the receivables turnover ratio has fluctuated over the years.
In December 2021, the receivables turnover ratio was 3.10, indicating that the company collected its outstanding receivables approximately 3.10 times during that period. This figure decreased to 3.01 by December 2022.
The ratio saw an increase to 3.25 by June 2023, indicating an improvement in the company's ability to collect its receivables efficiently. This trend continued with a slight decrease to 3.24 by September 2023.
However, the receivables turnover ratio dropped significantly to 2.71 by December 2023, showing a potential slowdown in collecting receivables. This trend continued as the ratio decreased further to 2.83 by March 2024, 2.73 by June 2024, 2.43 by September 2024, and finally to 2.14 by December 2024.
The decreasing trend in the receivables turnover ratio over time may raise concerns about the company's effectiveness in managing its accounts receivable, as lower turnover ratios suggest slower collection of outstanding payments from customers. Continued monitoring and potential improvements in the company's credit and collection policies may be necessary to enhance cash flow and overall financial performance.
Peer comparison
Dec 31, 2024