Arrow Electronics Inc (ARW)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 27,923,330 | 28,489,610 | 29,673,310 | 31,294,960 | 33,107,130 | 34,580,990 | 35,840,400 | 36,786,720 | 37,124,410 | 36,817,470 | 36,063,430 | 35,165,220 | 34,477,020 | 33,915,130 | 32,634,000 | 30,677,860 | 28,673,360 | 27,557,360 | 27,404,220 | 28,142,280 |
| Property, plant and equipment | US$ in thousands | 469,260 | 493,535 | 499,724 | 517,088 | 530,740 | 536,204 | 558,219 | 579,451 | 596,456 | 595,867 | 625,587 | 658,199 | 682,811 | 705,395 | 727,411 | 747,538 | 799,605 | 793,855 | 798,190 | 803,422 |
| Fixed asset turnover | 59.51 | 57.73 | 59.38 | 60.52 | 62.38 | 64.49 | 64.20 | 63.49 | 62.24 | 61.79 | 57.65 | 53.43 | 50.49 | 48.08 | 44.86 | 41.04 | 35.86 | 34.71 | 34.33 | 35.03 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $27,923,330K ÷ $469,260K
= 59.51
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. It is calculated by dividing net sales by average fixed assets. For Arrow Electronics Inc, the fixed asset turnover ratio has shown a consistent upward trend over the past few years, increasing from 35.03 in March 2020 to 59.51 in December 2024.
This increase indicates that Arrow Electronics Inc has been able to generate more revenue from its fixed assets over the years, reflecting improved efficiency in utilizing its property, plant, and equipment to support its sales operations. A higher fixed asset turnover ratio generally suggests better asset utilization and operational performance.
However, it is important to note that while a high fixed asset turnover ratio is generally positive, the optimal level can vary by industry and company size. It is also important to consider other factors and ratios in conjunction with fixed asset turnover to gain a more comprehensive understanding of Arrow Electronics Inc's financial performance and operational efficiency.
Peer comparison
Dec 31, 2024