Arrow Electronics Inc (ARW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,757,700 | 21,726,200 | 21,763,200 | 19,535,500 | 17,053,900 |
| Total stockholders’ equity | US$ in thousands | 5,761,150 | 5,805,460 | 5,546,360 | 5,282,300 | 5,089,320 |
| Financial leverage ratio | 3.78 | 3.74 | 3.92 | 3.70 | 3.35 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,757,700K ÷ $5,761,150K
= 3.78
The financial leverage ratio of Arrow Electronics Inc has shown a gradual increase over the past five years, starting at 3.35 in December 2020 and peaking at 3.92 in December 2022. Subsequently, there was a slight decrease to 3.74 in December 2023, followed by a marginal increase to 3.78 in December 2024. This indicates that the company relies more on debt financing relative to equity to support its operations and growth. It is crucial for investors and stakeholders to closely monitor this ratio to assess the company's risk and ability to meet its financial obligations, especially in times of economic uncertainty.
Peer comparison
Dec 31, 2024