Avnet 2011 Annual Report Download - page 36

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Table of Contents
The following table highlights the Company’s liquidity and related ratios for the past two fiscal years:
COMPARATIVE ANALYSIS — LIQUIDITY
The Company’
s quick assets (consisting of cash and cash equivalents and receivables) increased 16.6% from July 3, 2010 to
July 2, 2011 primarily due to the increase in receivables resulting from the increased volume of business associated with acquisitions
since the prior fiscal year end, significant organic sales growth and the impact of the change in foreign currency exchange spot rates at
July 2, 2011 as compared with July 3, 2010. Current assets increased 24.1% due to the increase in receivables and inventory, also a
result of the recent acquisitions, the impact of the change in foreign currency exchange spot rates and the double-
digit growth in sales.
Current liabilities increased 30.2% primarily due to the increase in short-
term borrowings used to support the growth in sales. In
addition, current liabilities increased due to growth in accounts payable, which was impacted by acquisitions and the exchange rate
changes mentioned previously. As a result of the factors noted above, total working capital increased by 17.5% during fiscal 2011.
Total debt increased by 18.5%, primarily due to the increase in short-
term borrowings, total capital increased 29.9% and the debt to
capital ratio decreased as compared with July 3, 2010 to 27.2%.
Long-Term Contractual Obligations
The Company has the following contractual obligations outstanding as of July 2, 2011 (in millions):
At July 2, 2011, the Company had a liability for income tax contingencies of $175.2 million, which is not included in the above
table. Cash payments associated with the remaining liability cannot reasonably be estimated as it is difficult to estimate the timing and
amount of tax settlements. The Company does not currently have any material commitments for capital expenditures.
32
Years Ended
July 2,
July 3,
Percentage
2011
2010
Change
(Dollars in millions)
Current Assets
$
8,227.2
$
6,630.2
24.1
%
Quick Assets
5,439.6
4,666.6
16.6
Current Liabilities
4,477.7
3,439.6
30.2
Working Capital
(1)
3,749.5
3,190.6
17.5
Total Debt
1,516.6
1,280.2
18.5
Total Capital (total debt plus total shareholders
’
equity)
5,572.7
4,289.3
29.9
Quick Ratio
1.2:1
1.4:1
Working Capital Ratio
1.8:1
1.9:1
Debt to Total Capital
27.2
%
29.8
%
(1)
This calculation of working capital is defined as current assets less current liabilities.
Due in Less
Due in
Due in
Due After
Total
Than 1 Year
1-3 Years
4-5 Years
5 Years
Long-term debt, including amounts due
within one year
(1)
$
1,519.6
$
243.1
$
426.2
$
250.3
$
600.0
Interest expense on long
-
term notes
(2)
$
372.5
$
70.3
$
135.4
$
92.8
$
74.0
Operating leases
$
304.6
$
92.4
$
120.3
$
49.5
$
42.4
(1)
Excludes discount on long
-
term notes.
(2)
Represents interest expense due on long
-
term notes with fixed interest rates.