Arrow Electronics Inc (ARW)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,923,300 | 33,107,100 | 37,124,400 | 34,477,000 | 28,673,400 |
| Property, plant and equipment | US$ in thousands | 469,260 | 530,740 | 596,456 | 682,811 | 799,605 |
| Fixed asset turnover | 59.50 | 62.38 | 62.24 | 50.49 | 35.86 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $27,923,300K ÷ $469,260K
= 59.50
Arrow Electronics Inc's fixed asset turnover has shown a positive trend over the past five years. Starting at 35.86 in December 31, 2020, it increased to 50.49 by December 31, 2021, and continued its upward trajectory to reach 62.24 by December 31, 2022. The ratio slightly increased to 62.38 by December 31, 2023, before slightly decreasing to 59.50 by December 31, 2024.
Overall, the fixed asset turnover ratio indicates how efficiently the company is generating revenue from its investment in fixed assets. The increasing trend suggests that Arrow Electronics Inc is utilizing its fixed assets more effectively over the years. However, the slight decrease in 2024 indicates a potential need for further analysis to understand the underlying reasons behind this trend. It is essential for stakeholders to closely monitor this ratio to ensure the company is effectively using its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024