Arrow Electronics Inc (ARW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,726,200 | 21,763,200 | 19,535,500 | 17,053,900 | 16,400,800 |
| Total stockholders’ equity | US$ in thousands | 5,805,460 | 5,546,360 | 5,282,300 | 5,089,320 | 4,811,920 |
| Financial leverage ratio | 3.74 | 3.92 | 3.70 | 3.35 | 3.41 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,726,200K ÷ $5,805,460K
= 3.74
The financial leverage ratio of Arrow Electronics Inc. has fluctuated over the past five years, ranging from 3.35 in 2020 to 3.92 in 2022. A higher financial leverage ratio indicates that the company relies more on debt to finance its operations, while a lower ratio suggests a lower reliance on debt financing.
In 2023, the financial leverage ratio decreased to 3.74 from 3.92 in 2022, indicating a slight reduction in the company's reliance on debt as a source of funding. This may suggest a more conservative financial approach or potentially a decrease in the company's debt levels relative to its equity.
Overall, the trend in Arrow Electronics Inc.'s financial leverage ratio highlights the importance of monitoring the company's capital structure and debt levels to assess its financial risk and stability.
Peer comparison
Dec 31, 2023