Arrow Electronics Inc (ARW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.79% | 12.53% | 13.03% | 12.19% | 11.13% |
| Operating profit margin | 2.75% | 4.44% | 5.57% | 4.52% | 3.12% |
| Pretax margin | 1.75% | 3.50% | 5.05% | 4.16% | 2.64% |
| Net profit margin | 1.40% | 2.73% | 3.84% | 3.21% | 2.04% |
Arrow Electronics Inc has demonstrated a general upward trend in its profitability ratios over the past five years. The gross profit margin has shown improvement from 11.13% in 2020 to 12.19% in 2021 and reaching 13.03% in 2022, before slightly decreasing to 12.53% in 2023 and 11.79% in 2024.
Similarly, the operating profit margin has increased steadily from 3.12% in 2020 to 4.52% in 2021 and further to 5.57% in 2022. However, there was a slight dip in 2023 to 4.44% and a more significant decrease to 2.75% in 2024.
The pretax margin also reflects a positive trend, rising from 2.64% in 2020 to 4.16% in 2021 and to 5.05% in 2022. It then experienced a decline to 3.50% in 2023 and a notable decrease to 1.75% in 2024.
The net profit margin, a crucial indicator of overall profitability, showed improvement from 2.04% in 2020 to 3.21% in 2021 and to 3.84% in 2022. However, it dropped to 2.73% in 2023 and significantly decreased to 1.40% in 2024.
Overall, while Arrow Electronics Inc has exhibited varying levels of profitability over the five-year period, it is essential for stakeholders to closely monitor the company's ability to maintain profitability in the face of changing market conditions and operational challenges.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.53% | 6.77% | 9.50% | 7.97% | 5.25% |
| Return on assets (ROA) | 1.80% | 4.16% | 6.56% | 5.67% | 3.43% |
| Return on total capital | 9.00% | 18.48% | 23.70% | 20.68% | 12.45% |
| Return on equity (ROE) | 6.81% | 15.56% | 25.73% | 20.98% | 11.48% |
Arrow Electronics Inc has shown a positive trend in its profitability ratios over the period from December 31, 2020, to December 31, 2024.
1. Operating Return on Assets (Operating ROA) has increased from 5.25% in 2020 to 9.50% in 2022, with a slight decrease to 6.77% in 2023, and a further decline to 3.53% in 2024. This ratio indicates the company's ability to generate operating profits from its assets.
2. Return on Assets (ROA) has also exhibited an upward trend, rising from 3.43% in 2020 to 6.56% in 2022, before dropping to 1.80% in 2024. ROA measures the company's overall efficiency in generating profits from its total assets.
3. Return on Total Capital has increased significantly from 12.45% in 2020 to 23.70% in 2022, before declining to 9.00% in 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders.
4. Return on Equity (ROE) has seen a similar positive trajectory, climbing from 11.48% in 2020 to 25.73% in 2022, then decreasing to 6.81% in 2024. ROE highlights the company's ability to generate profits from shareholder equity.
Overall, the profitability ratios of Arrow Electronics Inc show an improvement over the period, although there was a decline in some ratios in the latest year, which may warrant further investigation.