Arrow Electronics Inc (ARW)

Solvency ratios

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
Debt-to-assets ratio 0.13 0.11 0.12 0.13 0.10 0.13 0.18 0.18 0.15 0.16 0.14 0.14 0.11 0.12 0.11 0.12 0.12 0.14 0.13 0.14
Debt-to-capital ratio 0.32 0.28 0.30 0.32 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
Debt-to-equity ratio 0.48 0.40 0.43 0.46 0.37 0.48 0.66 0.67 0.57 0.61 0.53 0.52 0.42 0.39 0.36 0.37 0.41 0.44 0.45 0.48
Financial leverage ratio 3.78 3.51 3.50 3.56 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

Arrow Electronics Inc's solvency ratios show the company's ability to meet its long-term financial obligations.

The Debt-to-assets ratio has been relatively stable in recent quarters, ranging between 0.10 to 0.18. This ratio indicates that, on average, about 10% to 18% of Arrow Electronics' assets are financed by debt, with the rest funded by equity.

The Debt-to-capital ratio has also shown stability, fluctuating between 0.27 to 0.40 over the past few years. This ratio reveals that the company's debt accounts for around 27% to 40% of its capital structure.

The Debt-to-equity ratio shows a similar trend, with values ranging from 0.37 to 0.67. This ratio demonstrates the proportion of the company's assets financed through debt compared to equity, indicating that Arrow Electronics has been relying more on debt in recent periods.

The Financial leverage ratio, which indicates the extent to which the company is using debt to finance its assets, has fluctuated between 3.14 to 3.92. This suggests that Arrow Electronics' financial risk has varied over time, with higher values indicating higher financial leverage.

Overall, Arrow Electronics Inc's solvency ratios indicate a moderate level of debt in its capital structure, with some fluctuations in recent periods. Monitoring these ratios will be crucial to assess the company's ability to meet its long-term obligations and manage its financial risk effectively.

Coverage ratios

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
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

The interest coverage ratio of Arrow Electronics Inc has shown a decreasing trend from 2020 to 2024, indicating a declining ability to cover its interest expenses with its operating income. As of December 31, 2024, the interest coverage ratio stands at 2.85, which means that the company's operating income is 2.85 times the amount of interest it needs to pay. A ratio below 1 implies that the company is not generating enough operating income to meet its interest obligations.

The gradual decrease in the interest coverage ratio over the past few years may raise concerns about the company's financial health and ability to service its debt obligations. Investors and creditors typically consider a higher interest coverage ratio as a sign of financial stability and lower risk.

Arrow Electronics Inc may need to focus on improving its operating income or reducing its interest expenses to strengthen its interest coverage ratio and ensure sustainable financial performance in the future. Monitoring and addressing this ratio will be crucial for the company's long-term financial viability and solvency.