Arrow Electronics Inc (ARW)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,773,780 | 2,153,550 | 3,182,960 | 2,244,440 | 2,097,940 |
| Total stockholders’ equity | US$ in thousands | 5,761,150 | 5,805,460 | 5,546,360 | 5,282,300 | 5,089,320 |
| Debt-to-capital ratio | 0.32 | 0.27 | 0.36 | 0.30 | 0.29 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,773,780K ÷ ($2,773,780K + $5,761,150K)
= 0.32
The debt-to-capital ratio of Arrow Electronics Inc has shown fluctuations over the past five years.
As of December 31, 2020, the ratio was 0.29, indicating that 29% of the company's capital structure was funded by debt. By the end of 2021, the ratio slightly increased to 0.30. In 2022, there was a more significant increase to 0.36, implying a higher reliance on debt to finance operations.
However, by December 31, 2023, the debt-to-capital ratio decreased to 0.27, suggesting a reduction in the proportion of debt in the company's capital structure. The ratio then increased again to 0.32 by the end of 2024.
Overall, the trend in Arrow Electronics Inc's debt-to-capital ratio indicates some variability in the company's capital structure and debt levels over the past five years. It is important for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2024