Arrow Electronics Inc (ARW)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.16 | 0.19 | 0.20 | 0.21 |
| Debt-to-capital ratio | 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 | 0.35 | 0.39 | 0.40 | 0.40 |
| Debt-to-equity ratio | 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 | 0.55 | 0.63 | 0.66 | 0.66 |
| 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 |
The solvency ratios of Arrow Electronics Inc. provide insight into the company's ability to meet its long-term financial obligations. Looking at the debt-to-assets ratio over the past eight quarters, it has generally remained relatively stable, ranging from 0.16 to 0.20. This indicates that, on average, between 16% and 20% of the company's assets are financed by debt.
The debt-to-capital ratio, which measures the proportion of the company's capital structure that is financed by debt, has also shown consistency over the quarters, fluctuating between 0.37 and 0.43. This implies that around 37% to 43% of Arrow Electronics' capital comes from debt sources.
On the other hand, the debt-to-equity ratio has demonstrated more variability, ranging from 0.58 to 0.77. This suggests that the company's debt levels relative to its shareholders' equity have fluctuated significantly over the analyzed period.
Lastly, the financial leverage ratio, which reflects the extent to which the company relies on debt to finance its operations, has shown a relatively consistent trend, hovering around 3.63 to 3.92. A higher financial leverage ratio indicates higher financial risk and dependency on debt financing.
Overall, by examining Arrow Electronics Inc.'s solvency ratios, it can be observed that the company has maintained a relatively stable level of debt utilization over the quarters, with some fluctuations in the debt-to-equity ratio. However, it will be crucial for the company to monitor and manage its debt levels effectively to ensure long-term financial stability and sustainable growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 0.53 | 0.98 | 1.51 | 5.22 |
Based on the data provided, it appears that the interest coverage ratio for Arrow Electronics Inc. is not available for Q4 2023, Q3 2023, Q2 2023, Q1 2023, Q4 2022, Q3 2022, Q2 2022, and Q1 2022.
Interest coverage ratio is a financial metric used to evaluate a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
The absence of the interest coverage ratio data for Arrow Electronics Inc. in the provided table makes it challenging to assess the company's ability to meet its interest payments with its earnings. It is recommended to obtain this information for a more comprehensive analysis of the company's financial health and performance.