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.