Arrow Electronics Inc (ARW)
Working capital 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 |
| Total current assets | US$ in thousands | 18,401,400 | 17,526,900 | 16,765,200 | 16,901,100 | 18,327,500 | 17,306,000 | 17,131,200 | 16,866,800 | 18,340,300 | 17,131,100 | 16,424,400 | 15,941,500 | 15,893,300 | 13,725,700 | 13,082,600 | 12,367,100 | 13,152,900 | 11,659,900 | 11,794,000 | 11,588,100 |
| Total current liabilities | US$ in thousands | 12,636,200 | 11,970,800 | 11,318,700 | 11,360,600 | 13,187,900 | 11,936,000 | 10,669,300 | 10,390,100 | 12,389,600 | 11,418,100 | 11,033,100 | 10,671,600 | 11,326,100 | 9,501,880 | 9,072,700 | 8,393,010 | 9,130,880 | 7,914,710 | 8,132,430 | 7,913,180 |
| Working capital turnover | 4.84 | 5.13 | 5.45 | 5.65 | 6.44 | 6.44 | 5.55 | 5.68 | 6.24 | 6.44 | 6.69 | 6.67 | 7.55 | 8.03 | 8.14 | 7.72 | 7.13 | 7.36 | 7.48 | 7.66 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $27,923,330K ÷ ($18,401,400K – $12,636,200K)
= 4.84
The working capital turnover of Arrow Electronics Inc has shown a consistent downward trend over the past few years, starting from 7.66 in March 2020 and declining to 4.84 in December 2024. This indicates that the company's efficiency in generating revenue from its working capital has been decreasing over time. The peak in the working capital turnover occurred in June 2021 at 8.14, but it has been steadily declining since then. A lower working capital turnover suggests that the company may be facing challenges in efficiently utilizing its working capital to drive sales and business operations. This trend warrants further analysis to identify potential issues in working capital management and explore strategies to improve efficiency and profitability.
Peer comparison
Dec 31, 2024