Arrow Electronics Inc (ARW)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.15 | 0.11 | 0.12 | 0.16 |
| Debt-to-capital ratio | 0.27 | 0.36 | 0.30 | 0.29 | 0.35 |
| Debt-to-equity ratio | 0.37 | 0.57 | 0.42 | 0.41 | 0.55 |
| Financial leverage ratio | 3.74 | 3.92 | 3.70 | 3.35 | 3.41 |
The solvency ratios of Arrow Electronics Inc. provide insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio:
- The trend shows a slight increase from 0.13 in 2021 to 0.18 in 2019, which indicates that a higher proportion of the company's assets are financed by debt.
- As of 2023, the debt-to-assets ratio stands at 0.18, suggesting that 18 cents of every dollar of assets is funded by debt.
2. Debt-to-capital ratio:
- The debt-to-capital ratio has been relatively stable between 0.31 and 0.40 from 2020 to 2023, indicating a consistent level of debt financing in the company's overall capital structure.
- As of 2023, the debt-to-capital ratio is at 0.40, implying that debt constitutes 40% of the company's total capital.
3. Debt-to-equity ratio:
- The debt-to-equity ratio has shown variability over the years, from 0.44 in 2020 to 0.68 in 2022, with a notable decrease to 0.66 in 2023.
- As of 2023, the debt-to-equity ratio is at 0.66, signifying that for every dollar of equity, the company has $0.66 of debt.
4. Financial leverage ratio:
- The financial leverage ratio has fluctuated between 3.35 and 3.92 from 2019 to 2023, demonstrating changes in the company's financial leverage over the years.
- As of 2023, the financial leverage ratio is at 3.74, indicating that the company has $3.74 of total assets for every dollar of equity.
Overall, Arrow Electronics Inc.'s solvency ratios suggest a moderate reliance on debt financing and varying levels of leverage, highlighting the importance of monitoring long-term debt levels and their implications for the company's financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.48 | 11.14 | 11.82 | 6.52 | 0.53 |
Unfortunately, the provided data is missing the interest coverage ratios for Arrow Electronics Inc. for the past five years. Interest coverage ratio is a key financial metric that indicates a company's ability to repay its interest obligations by measuring its earnings before interest and taxes (EBIT) relative to its interest expenses. Without this specific information, a detailed analysis of Arrow Electronics Inc.'s interest coverage over the specified period is not feasible. Additionally, the absence of this data hinders the assessment of the company's financial health, leverage position, and ability to meet its debt obligations, which are crucial aspects for investors and analysts. For a comprehensive analysis, it would be necessary to obtain the interest coverage ratios for the missing years to evaluate Arrow Electronics Inc.'s performance and trends accurately.