Arrow Electronics Inc (ARW)

Operating profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 768,557 890,133 1,054,954 1,234,929 1,471,164 1,677,081 1,839,692 1,980,270 2,068,494 2,057,830 1,960,001 1,767,695 1,556,822 1,366,302 1,199,619 1,055,710 894,511 811,207 746,243 440
Revenue (ttm) US$ in thousands 27,923,330 28,489,610 29,673,310 31,294,960 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
Operating profit margin 2.75% 3.12% 3.56% 3.95% 4.44% 4.85% 5.13% 5.38% 5.57% 5.59% 5.43% 5.03% 4.52% 4.03% 3.68% 3.44% 3.12% 2.94% 2.72% 0.00%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $768,557K ÷ $27,923,330K
= 2.75%

The operating profit margin of Arrow Electronics Inc has shown a fluctuating trend over the analyzed period from March 31, 2020, to December 31, 2024. Initially, the operating profit margin was at 0.00% in March 2020, indicating breakeven or minimal profitability.

However, there was a steady improvement in the operating profit margin over the next few quarters, reaching a peak of 5.59% in September 2022. This upward trend suggests that the company was effectively controlling its operating expenses and generating higher profits from its core business operations.

Subsequently, there was a slight decline in the operating profit margin, dropping to 4.44% by December 31, 2023, and further decreasing to 2.75% by the end of December 31, 2024. These declines may indicate challenges in maintaining profitability, potentially due to increasing operating costs or declining sales margins.

Overall, Arrow Electronics Inc's operating profit margin has demonstrated resilience and efficiency in managing costs to generate profits, although it faced some fluctuations and downward trends in the latter part of the analyzed period.


Peer comparison

Dec 31, 2024

Company name
Symbol
Operating profit margin
Arrow Electronics Inc
ARW
2.75%
Avnet Inc
AVT
3.55%
TE Connectivity Ltd
TEL
17.69%