Arrow Electronics Inc (ARW)
Total 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 |
| Total assets | US$ in thousands | 21,757,700 | 21,726,200 | 21,763,200 | 19,535,500 | 17,053,900 |
| Total asset turnover | 1.28 | 1.52 | 1.71 | 1.76 | 1.68 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $27,923,300K ÷ $21,757,700K
= 1.28
Arrow Electronics Inc's total asset turnover has shown some fluctuations over the past five years. The ratio increased from 1.68 in December 2020 to 1.76 in December 2021, indicating that the company generated $1.76 in net sales for every dollar of total assets in 2021. However, this trend reversed in the subsequent years. In December 2022, the total asset turnover ratio decreased slightly to 1.71, suggesting a slight decrease in efficiency in utilizing total assets to generate sales.
There was a more significant decline in the total asset turnover ratio for the years 2023 and 2024. In December 2023, the ratio dropped to 1.52, and further decreased to 1.28 by December 2024. These decreasing ratios indicate a potential issue with asset management efficiency or a decline in sales relative to the total assets employed. It might be worth investigating the reasons behind this significant decrease to assess the company's operational effectiveness and financial performance more closely.
Peer comparison
Dec 31, 2024