Arrow Electronics Inc (ARW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 218,053 | 176,915 | 222,194 | 373,615 | 300,103 |
| Short-term investments | US$ in thousands | — | — | — | 76,358 | — |
| Total current liabilities | US$ in thousands | 13,187,900 | 12,389,600 | 11,326,100 | 9,130,880 | 8,258,160 |
| Cash ratio | 0.02 | 0.01 | 0.02 | 0.05 | 0.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($218,053K
+ $—K)
÷ $13,187,900K
= 0.02
The cash ratio of Arrow Electronics Inc. has shown some fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio increased to 0.07 from 0.06 in 2022. This indicates that Arrow Electronics Inc. had slightly more cash and cash equivalents relative to its current liabilities in 2023 compared to the previous year.
Looking further back, in 2021, the company's cash ratio was 0.05, which was lower than both 2022 and 2023. This suggests that Arrow Electronics Inc. had relatively less liquidity to cover its short-term obligations in 2021.
Interestingly, the cash ratio was also 0.07 in both 2020 and 2019. This indicates that even though the ratio remained constant over these two years, the company managed to sustain its ability to cover short-term liabilities with its available cash and cash equivalents.
Overall, the trend in Arrow Electronics Inc.'s cash ratio shows some variability, but the company has generally maintained a reasonable level of liquidity to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023