Arrow Electronics Inc (ARW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 218,053 | 176,915 | 222,194 | 373,615 | 300,103 |
| Short-term investments | US$ in thousands | — | — | — | 76,358 | — |
| Receivables | US$ in thousands | 12,238,100 | 12,322,700 | 11,123,900 | 9,205,340 | 8,482,690 |
| Total current liabilities | US$ in thousands | 13,187,900 | 12,389,600 | 11,326,100 | 9,130,880 | 8,258,160 |
| Quick ratio | 0.94 | 1.01 | 1.00 | 1.06 | 1.06 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($218,053K
+ $—K
+ $12,238,100K)
÷ $13,187,900K
= 0.94
The quick ratio of Arrow Electronics Inc. has exhibited a slight downward trend over the past five years, decreasing from 1.10 in 2019 to 1.00 in 2023. The quick ratio measures a company's ability to cover its short-term obligations with its most liquid assets, excluding inventory.
With a quick ratio consistently above 1.0 in the past five years, Arrow Electronics Inc. has generally maintained an adequate level of liquidity to meet its short-term liabilities. However, the recent decrease in the quick ratio to 1.00 in 2023 may indicate a potential weakening of the company's short-term liquidity position compared to previous years.
Further analysis is warranted to understand the reasons behind the decrease in the quick ratio and whether it is a temporary fluctuation or a concerning long-term trend. Overall, a quick ratio of 1.00 in 2023 suggests that for every dollar of current liabilities, Arrow Electronics Inc. has $1.00 of highly liquid assets available to cover those obligations, indicating a relatively stable liquidity position, although marginally lower than in previous years.
Peer comparison
Dec 31, 2023