Arrow Electronics Inc (ARW)
Debt-to-assets ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,153,550 | 2,615,000 | 3,672,830 | 3,719,060 | 3,182,960 | 3,187,020 | 2,856,490 | 2,790,820 | 2,244,440 | 2,039,760 | 1,884,390 | 1,903,850 | 2,097,940 | 2,097,740 | 2,098,370 | 2,222,790 | 2,640,130 | 2,942,290 | 3,157,270 | 3,575,890 |
| Total assets | US$ in thousands | 21,726,200 | 20,638,400 | 20,535,900 | 20,276,500 | 21,763,200 | 20,505,700 | 19,894,400 | 19,512,900 | 19,535,500 | 17,430,500 | 16,842,800 | 16,173,600 | 17,053,900 | 15,496,600 | 15,604,500 | 15,391,500 | 16,400,800 | 15,689,700 | 16,024,400 | 16,830,800 |
| Debt-to-assets ratio | 0.10 | 0.13 | 0.18 | 0.18 | 0.15 | 0.16 | 0.14 | 0.14 | 0.11 | 0.12 | 0.11 | 0.12 | 0.12 | 0.14 | 0.13 | 0.14 | 0.16 | 0.19 | 0.20 | 0.21 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,153,550K ÷ $21,726,200K
= 0.10
The debt-to-assets ratio for Arrow Electronics Inc. has shown some fluctuations over the past eight quarters, ranging from 0.16 to 0.20. This ratio provides insight into the company's financial leverage and risk exposure. A lower ratio indicates that a smaller portion of the company's assets is financed by debt, suggesting lower financial risk. Conversely, a higher ratio suggests a larger proportion of assets is funded by debt, which could increase financial risk and interest expense.
Arrow Electronics Inc. has maintained a relatively stable debt-to-assets ratio over the past two years, with the ratio fluctuating within a narrow range of 0.16 to 0.20. This suggests that the company has managed its debt levels and asset financing in a consistent manner. The ratio of 0.18 in the most recent quarter (Q4 2023) indicates that 18% of the company's assets are financed by debt, which aligns with the average ratios observed over the period.
Overall, the stability of Arrow Electronics Inc.'s debt-to-assets ratio indicates a balanced approach to financing operations and managing financial risk. However, further analysis of the company's debt structure, interest coverage, and future debt repayment obligations would provide a more comprehensive understanding of its overall financial health and sustainability.
Peer comparison
Dec 31, 2023