Arrow Electronics Inc (ARW)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 28,916,850 | 29,496,840 | 29,909,160 | 29,957,140 |
| Total current assets | US$ in thousands | 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 | 12,526,200 | 11,839,600 | 12,110,400 | 12,253,900 |
| Total current liabilities | US$ in thousands | 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 | 8,258,160 | 7,371,640 | 7,377,960 | 7,034,120 |
| Working capital turnover | 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 | 6.78 | 6.60 | 6.32 | 5.74 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $33,107,130K ÷ ($18,327,500K – $13,187,900K)
= 6.44
Arrow Electronics Inc.'s working capital turnover has shown some fluctuations over the past eight quarters. The working capital turnover ratio calculates how efficiently a company is using its working capital to generate sales revenue. In this case, we can see that the working capital turnover ratio has ranged from 5.55 to 6.69 over the given period.
A higher working capital turnover ratio indicates that the company is generating more sales revenue per dollar of working capital invested, which is generally viewed as a positive sign of efficiency. However, in the context of Arrow Electronics Inc., the ratio has fluctuated within a relatively narrow range. This suggests that the company has maintained a consistent level of efficiency in utilizing its working capital to generate sales revenue.
It is important to further analyze the factors contributing to these fluctuations and evaluate whether they are driven by changes in the company's working capital management strategies, sales growth, or other external factors. Overall, Arrow Electronics Inc.'s working capital turnover performance indicates a reasonably efficient use of its working capital resources to support its sales operations.
Peer comparison
Dec 31, 2023