Arrow Electronics Inc (ARW)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 188,807 | 218,053 | 176,915 | 222,194 | 373,615 |
| Short-term investments | US$ in thousands | — | — | — | — | 76,358 |
| Total current liabilities | US$ in thousands | 12,636,200 | 13,187,900 | 12,389,600 | 11,326,100 | 9,130,880 |
| Cash ratio | 0.01 | 0.02 | 0.01 | 0.02 | 0.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($188,807K
+ $—K)
÷ $12,636,200K
= 0.01
The cash ratio of Arrow Electronics Inc has shown a declining trend over the past five years. As of December 31, 2020, the cash ratio was 0.05, indicating that the company had $0.05 of cash for every $1 of current liabilities. This ratio decreased to 0.02 by December 31, 2021, and further dropped to 0.01 by December 31, 2022 and 2024. However, there was a slight improvement to 0.02 by December 31, 2023.
A cash ratio below 1 suggests that the company may face difficulty in meeting its short-term obligations solely with its cash and cash equivalents. The decreasing trend in the cash ratio over the years may raise concerns about the company's liquidity position and ability to cover immediate financial obligations. It would be essential for Arrow Electronics Inc to monitor its cash management practices and ensure sufficient liquidity to support its ongoing operations and financial health.
Peer comparison
Dec 31, 2024