Arrow Electronics Inc (ARW)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,805,460 | 5,485,260 | 5,586,340 | 5,530,530 | 5,546,360 | 5,245,750 | 5,340,470 | 5,369,950 | 5,282,300 | 5,178,480 | 5,164,920 | 5,155,760 | 5,089,320 | 4,781,060 | 4,694,820 | 4,595,120 | 4,811,920 | 4,690,820 | 4,768,720 | 5,449,000 |
| Debt-to-capital ratio | 0.27 | 0.32 | 0.40 | 0.40 | 0.36 | 0.38 | 0.35 | 0.34 | 0.30 | 0.28 | 0.27 | 0.27 | 0.29 | 0.30 | 0.31 | 0.33 | 0.35 | 0.39 | 0.40 | 0.40 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,153,550K ÷ ($2,153,550K + $5,805,460K)
= 0.27
The debt-to-capital ratio of Arrow Electronics Inc. has been relatively stable over the past eight quarters, ranging from 0.37 to 0.43. This ratio indicates the proportion of the company's total debt in relation to its total capital, which includes both debt and equity.
The trend shows that Arrow Electronics Inc. has maintained a moderate level of leverage with an average debt-to-capital ratio of around 0.41 during this period. A ratio below 0.5 typically suggests that the company uses a reasonable amount of debt compared to its total capital structure.
While there has been some fluctuation in the ratio, it has generally remained within a reasonable range, indicating that Arrow Electronics Inc. has been managing its debt levels effectively relative to its overall capital base. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial risk and leverage position.
Peer comparison
Dec 31, 2023