Arrow Electronics Inc (ARW)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 903,505 | 1,426,880 | 1,108,200 | 584,438 | -204,087 |
| Revenue | US$ in thousands | 33,107,100 | 37,124,400 | 34,477,000 | 28,673,400 | 28,916,800 |
| Net profit margin | 2.73% | 3.84% | 3.21% | 2.04% | -0.71% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $903,505K ÷ $33,107,100K
= 2.73%
Arrow Electronics Inc.'s net profit margin has shown varying trends over the past five years. In 2023, the net profit margin decreased to 2.73% from 3.84% in 2022, indicating a decline in profitability. The marginal decrease may suggest challenges in managing costs or generating revenues efficiently.
Comparing the net profit margin in 2023 to that in 2019, which was negative at -0.71%, it is evident that the company has significantly improved its profitability over the years. However, the fluctuations in the net profit margin from 2020 to 2023 may indicate inconsistencies in the company's financial performance.
Overall, Arrow Electronics Inc. should focus on sustaining or improving its net profit margin in the coming periods to ensure long-term profitability and investor confidence. A thorough analysis of the company's cost structure, revenue streams, and overall operational efficiency may help in identifying areas for improvement.
Peer comparison
Dec 31, 2023