Avnet, Inc.
Supplier Financial Health Report
Overview
June 2024
USA
Incorporated Country
15,800
Number of Employees
A+
Credit Rating
6
Count of Investments
Five-Year Financial Trend Analysis for Avnet, Inc.
CONSTANT
Credit Trend
15.53%
Total Balance Sheet Growth Rate
678.86%
Total Debt Growth Rate
Avnet's balance sheet also reflects this growth, with total assets increasing from $10.8B in 2015 to $12.48B in 2023, a 15.53% change. The company's cash reserves have also grown significantly, from $63.39M in 2015 to $288.23M in 2023, a 354.71% increase.
However, the company's total debt has also risen dramatically, from $392.71M in 2019 to $3.06B in 2023, a 678.86% increase. This increase in debt may be a cause for concern, as it could indicate higher financial risk. Avnet's liabilities have also grown significantly, from $15.11M in 2019 to $7.73B in 2023, a 51,016.81% change.
Despite this increase in debt and liabilities, Avnet's net income and EBITDA have also shown substantial growth. Net income rose from $571.91M in 2015 to $770.83M in 2023, a 34.78% change, while EBITDA increased from $552.31M in 2019 to $1.38B in 2023, a 149.27% change.
Avnet's credit rating of A+ and credit score of 98, with a constant trend, indicate strong financial health and low credit risk. The company's foreign revenue is also diversified, with significant contributions from countries such as Taiwan, Germany, China, Belgium, Singapore, Japan, India, France, Italy, and the Russian Federation.
In conclusion, Avnet, Inc.'s financial health is strong, with significant revenue growth, a strong balance sheet, and a good credit rating. However, the dramatic increase in debt and liabilities may be a cause for concern and should be monitored closely. The company's diversified foreign revenue sources also contribute to its financial stability.
Financial Health Risk Assessment for Avnet, Inc.
LOW
Credit Risk
LOW
Bankruptcy Risk
LOW
Financial Health Risk
However, there are some areas of concern. Avnet's total debt has risen dramatically from $392.71M in 2019 to $3.06B in 2023, a 678.86% increase. This increase in debt may indicate higher financial risk. Additionally, the company's liabilities have grown significantly from $15.11M in 2019 to $7.73B in 2023, a 51,016.81% change. Despite these concerns, Avnet's net income and EBITDA have also shown substantial growth. However, it's important to consider these figures in relation to the significant increase in debt and liabilities.
The company's financial metrics suggest that it is in a relatively strong financial position, with a current ratio of 2.53, indicating sufficient current assets to cover short-term liabilities. However, there are areas of concern, such as a low gross profit margin of 0.12, which may indicate production inefficiencies or high costs. The net profit margin of 0.03 is also quite low, indicating that Avnet may be struggling to generate significant earnings. The return on assets (ROA) and return on equity (ROE) are also below industry averages, suggesting that the company may not be efficiently using its assets or equity to generate earnings. The quick ratio is lower than the current ratio, indicating that Avnet may not have enough quick assets to cover its immediate liabilities.
Avnet's credit rating of A+ and credit score of 98, along with a strong current ratio and a high Altman Z-Score, suggest that the company's financial position is generally strong and that the probability of bankruptcy within the next two years is low. However, it's important to keep monitoring these financial indicators closely, particularly the increase in debt and liabilities, to ensure that Avnet remains financially stable.
List of UEIs for Avnet, Inc.
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