Arrow Electronics Inc (ARW)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.39 | 1.48 | 1.40 | 1.44 | 1.52 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $18,327,500K ÷ $13,187,900K
= 1.39
The current ratio of Arrow Electronics Inc. has exhibited a declining trend over the past five years, decreasing from 1.52 in 2019 to 1.39 in 2023. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable.
Although the current ratio has been above 1 for all years analyzed, the decreasing trend may raise some concerns about the company's liquidity position. A declining current ratio could suggest that the company's current liabilities are growing faster than its current assets, potentially indicating difficulties in meeting short-term obligations.
It is important for investors and stakeholders to closely monitor Arrow Electronics Inc.'s current ratio and assess the reasons behind the declining trend to ensure the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023