Arrow Electronics Inc (ARW)
Working capital 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 |
| Total current assets | US$ in thousands | 18,327,500 | 18,340,300 | 15,893,300 | 13,152,900 | 12,526,200 |
| Total current liabilities | US$ in thousands | 13,187,900 | 12,389,600 | 11,326,100 | 9,130,880 | 8,258,160 |
| Working capital turnover | 6.44 | 6.24 | 7.55 | 7.13 | 6.78 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $33,107,100K ÷ ($18,327,500K – $13,187,900K)
= 6.44
Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue. Arrow Electronics Inc.'s working capital turnover over the past five years has shown a fluctuating trend.
In 2023, the working capital turnover ratio increased to 6.44, indicating that the company generated $6.44 in sales revenue for every dollar of working capital. This is slightly higher compared to the previous year, showing improved efficiency in utilizing its working capital.
In 2022, the ratio was 6.24, which decreased from 2021 but remained relatively stable. This suggests that the company's efficiency in managing its working capital slightly declined, but it was still able to generate a significant amount of sales revenue relative to its working capital.
In 2021, the ratio was notably high at 7.55, indicating that the company efficiently converted its working capital into sales revenue. This could be a sign of effective working capital management and optimization of resources.
In 2020 and 2019, the working capital turnover ratios were 7.13 and 6.78, respectively. These figures show that Arrow Electronics Inc. has been consistently effective in utilizing its working capital to drive sales revenue over these years.
Overall, Arrow Electronics Inc. has demonstrated generally sound efficiency in managing its working capital to generate sales revenue, with some fluctuations in the ratio over the past five years.
Peer comparison
Dec 31, 2023