Arrow Electronics Inc (ARW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 33,107,100 | 37,124,400 | 34,477,000 | 28,673,400 | 28,916,800 |
| Property, plant and equipment | US$ in thousands | 530,740 | 596,456 | 682,811 | 799,605 | 803,110 |
| Fixed asset turnover | 62.38 | 62.24 | 50.49 | 35.86 | 36.01 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $33,107,100K ÷ $530,740K
= 62.38
The fixed asset turnover ratio measures how efficiently Arrow Electronics Inc. generates sales revenue from its investment in fixed assets. A higher ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
- The fixed asset turnover ratio has shown a consistent improvement over the last few years, increasing from 36.01 in 2019 to 62.38 in 2023.
- This indicates that Arrow Electronics has been able to generate significantly more sales revenue for every dollar invested in fixed assets.
- The substantial improvement in the fixed asset turnover ratio reflects the company's effective management and utilization of its fixed assets to drive sales growth.
- The consistently high fixed asset turnover ratio suggests that Arrow Electronics is efficiently managing its fixed asset base and leveraging these assets to generate revenue.
- Overall, the trend in the fixed asset turnover ratio showcases Arrow Electronics' ability to optimize its fixed assets and indicates a positive operational performance in terms of asset utilization and sales generation.
Peer comparison
Dec 31, 2023