Arrow Electronics Inc (ARW)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 768,557 | 1,471,160 | 2,068,490 | 1,556,820 | 894,511 |
| Total assets | US$ in thousands | 21,757,700 | 21,726,200 | 21,763,200 | 19,535,500 | 17,053,900 |
| Operating ROA | 3.53% | 6.77% | 9.50% | 7.97% | 5.25% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $768,557K ÷ $21,757,700K
= 3.53%
Operating return on assets (ROA) is a key financial ratio that indicates the efficiency with which a company generates operating income from its assets. Analyzing the operating ROA of Arrow Electronics Inc over the years provides insights into the company's operational performance.
- In 2020, the operating ROA of Arrow Electronics Inc was 5.25%. This suggests that for every dollar of assets the company had, it generated 5.25 cents of operating income.
- By the end of 2021, the operating ROA increased to 7.97%, indicating an improvement in the company's ability to generate operating income relative to its assets.
- In 2022, Arrow Electronics Inc demonstrated further improvement in operational efficiency with an operating ROA of 9.50%, reaching its peak during this period.
- The operating ROA dropped to 6.77% by the end of 2023, possibly indicating a slight decline in operational performance compared to the previous year.
- In 2024, the operating ROA decreased significantly to 3.53%, signaling a notable decrease in the company's ability to generate operating income from its assets, possibly due to operational challenges or changes in the business environment.
Overall, the trend in Arrow Electronics Inc's operating ROA shows fluctuations over the years, with notable improvements followed by some declines. It is essential for stakeholders to closely monitor these changes to assess the company's operational efficiency and performance in utilizing its assets effectively.
Peer comparison
Dec 31, 2024