Arrow Electronics Inc (ARW)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 28,916,850 | 29,496,840 | 29,909,160 | 29,957,140 |
| Property, plant and equipment | US$ in thousands | 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 | 803,110 | 805,264 | 813,917 | 819,604 |
| Fixed asset turnover | 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 | 36.01 | 36.63 | 36.75 | 36.55 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $33,107,130K ÷ $530,740K
= 62.38
Arrow Electronics Inc. has shown a consistent improvement in its fixed asset turnover ratio over the past eight quarters. The company's fixed asset turnover ratio has been steadily increasing from 53.43 in Q1 2022 to 64.49 in Q3 2023. This indicates that Arrow Electronics Inc. is generating more revenue per dollar of fixed assets invested in its operations.
The company's fixed asset turnover ratio has been consistently above 60 for the past six quarters, showcasing the efficient utilization of its fixed assets to generate sales. This steady improvement in the fixed asset turnover ratio reflects effective asset management by Arrow Electronics Inc. management, as they are utilizing their fixed assets more efficiently to drive revenue growth.
Overall, the trend of increasing fixed asset turnover ratio for Arrow Electronics Inc. suggests that the company is effectively managing its fixed assets to support revenue generation and operational efficiency. This trend indicates positive prospects for the company's financial performance and operational effectiveness in utilizing its assets for business operations.
Peer comparison
Dec 31, 2023