Arrow Electronics Inc (ARW)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 3.74 | 3.76 | 3.68 | 3.67 | 3.92 | 3.91 | 3.73 | 3.63 | 3.70 | 3.37 | 3.26 | 3.14 | 3.35 | 3.24 | 3.32 | 3.35 | 3.41 | 3.34 | 3.36 | 3.09 |
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 shown some fluctuations in recent quarters. The ratio was relatively high, ranging between 3.63 to 3.92 over the past eight quarters. A higher financial leverage ratio indicates that the company relies more on debt to finance its operations and investments compared to its equity.
In the most recent quarter, Q4 2023, the financial leverage ratio decreased slightly to 3.74 from 3.76 in Q3 2023. This may suggest a moderation in the company's reliance on debt financing. However, it is important to note that the ratio remains at a relatively high level, indicating a significant debt burden relative to equity.
Overall, Arrow Electronics Inc.'s financial leverage ratio has been fluctuating, reflecting the company's changing capital structure and debt management strategies. Investors and stakeholders should closely monitor this ratio to assess the company's financial risk and leverage levels.
Peer comparison
Dec 31, 2023