Arrow Electronics Inc (ARW)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 768,557 | 890,133 | 1,054,954 | 1,234,929 | 1,471,164 | 1,677,081 | 1,839,692 | 1,980,270 | 2,068,494 | 2,057,830 | 1,960,001 | 1,767,695 | 1,556,822 | 1,366,302 | 1,199,619 | 1,055,710 | 894,511 | 811,207 | 746,243 | 440 |
| Interest expense (ttm) | US$ in thousands | 269,834 | 291,494 | 310,727 | 328,670 | 328,724 | 308,893 | 277,649 | 231,321 | 190,156 | 162,654 | 144,385 | 136,564 | 135,833 | 132,728 | 130,522 | 131,704 | 137,210 | 155,913 | 175,334 | 195,030 |
| Interest coverage | 2.85 | 3.05 | 3.40 | 3.76 | 4.48 | 5.43 | 6.63 | 8.56 | 10.88 | 12.65 | 13.57 | 12.94 | 11.46 | 10.29 | 9.19 | 8.02 | 6.52 | 5.20 | 4.26 | 0.00 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $768,557K ÷ $269,834K
= 2.85
The interest coverage ratio for Arrow Electronics Inc has shown a consistent upward trend from 0.00 in March 2020 to 2.85 in December 2024. This indicates the company's improving ability to cover its interest expenses through its operating income. The gradual increase in the ratio suggests that the company is becoming more efficient in managing its interest obligations over time. However, the declining trend in recent periods, particularly from March 2023 to December 2024, may signal a potential concern regarding the company's ability to generate sufficient earnings to cover its interest costs. It would be advisable to closely monitor this ratio in future periods to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024