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Arrow Electronics Cash Conversion Cycle

: 45.64 (As of Jun. 2021)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Arrow Electronics's Days Sales Outstanding for the three months ended in Jun. 2021 was 92.45.
Arrow Electronics's Days Inventory for the three months ended in Jun. 2021 was 41.7.
Arrow Electronics's Days Payable for the three months ended in Jun. 2021 was 88.51.
Therefore, Arrow Electronics's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2021 was 45.64.


Arrow Electronics Cash Conversion Cycle Historical Data

The historical data trend for Arrow Electronics's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arrow Electronics Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Cash Conversion Cycle
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.66 52.08 54.34 57.83 53.72

Arrow Electronics Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Cash Conversion Cycle Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 55.36 49.70 42.56 44.82 45.64

Competitive Comparison

For the Electronics & Computer Distribution subindustry, Arrow Electronics's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Arrow Electronics Cash Conversion Cycle Distribution

For the Hardware industry and Technology sector, Arrow Electronics's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Arrow Electronics's Cash Conversion Cycle falls into.



Arrow Electronics Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Arrow Electronics's Cash Conversion Cycle for the fiscal year that ended in Dec. 2020 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=112.58+48.45-107.31
=53.72

Arrow Electronics's Cash Conversion Cycle for the quarter that ended in Jun. 2021 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=92.45+41.7-88.51
=45.64

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Arrow Electronics  (NYSE:ARW) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Arrow Electronics Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Arrow Electronics's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Arrow Electronics Business Description

Arrow Electronics logo
Industry
Technology » Hardware NAICS : 423690 SIC : 5065
Traded in Other Exchanges
Address
9201 East Dry Creek Road, Centennial, CO, USA, 80112
Arrow Electronics is a leading value-added distributor of semiconductors, electronic components, software, and enterprise infrastructure hardware. The company operates in two segments: global components, which includes the sale of semiconductors, and global enterprise computing solutions, which includes the sale of software, storage, and servers. Arrow primarily serves small to midsize electronic equipment manufacturers and value-added resellers.
Executives
Smith Gerry P director 6600 NORTH MILITARY TRAIL LEGAL DEPARTMENT BOCA RATON FL 33496
Long Michael J director, officer: Chairman, President & CEO 9201 EAST DRY CREEK ROAD CENTENNIAL CO 80112
Krzeminski Laurel J director 585 WEST BEACH STREET PO BOX 50085 WATSONVILLE CA 95076
Kerin Andrew Charles director C/O ARAMARK CORPORATION 1101 MARKET STREET PHILADELPHIA PA 19107
Gunby Steven Henry director 9508 HEMSWELL PLACE POTOMAC MD 20854
Perry Barry W director 25 WEATHERFIELD DRIVE NEWTOWN PA 18940
Patrick Stephen C director C/O COLGATE PALMOLIVE CO 300 PARK AVE 15TH FL NEW YORK NY 10022
Hughes Lily Yan officer: SVP & Chief Legal Officer C/O PUBLIC STORAGE 701 WESTERN AVENUE GLENDALE CA 91201
Kerins Sean J officer: President, Global ECS ARROW ELECTRONICS, INC. 9201 EAST DRY CREEK ROAD CENTENNIAL CO 80112
Morris Mary Catherine officer: Chief Strategy Officer ARROW ELECTRONICS, INC. 9201 EAST DRY CREEK ROAD CENTENNIAL CO 80112
Zech Gretchen officer: SVP, Chief Human Resources Off C/O R.H. DONNELLEY CORPORATION 1001 WINSTEAD DRIVE CARY NC 27513
Melvin Vincent P officer: Chief Information Officer ARROW ELECTRONICS, INC. 9201 EAST DRY CREEK ROAD CENTENNIAL CO 80112
Keeth Martha Frances director C/O ARROW ELECTRONICS, INC 9201 EAST DRY CREEK ROAD CENTENNIAL CO 80112
Kostalnick Charles Ii officer: Chief Supply Chain Officer 2700 NORTH FIRST STREET SAN JOSE CA 95134
Austen William F. director 222 SOUTH 9TH STREET, SUITE 2300 MINNEAPOLIS MN 55402-4099

Arrow Electronics Headlines

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