Arrow Electronics Inc (ARW)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,471,160 | 2,068,490 | 1,556,820 | 894,511 | 107,696 |
| Total assets | US$ in thousands | 21,726,200 | 21,763,200 | 19,535,500 | 17,053,900 | 16,400,800 |
| Operating ROA | 6.77% | 9.50% | 7.97% | 5.25% | 0.66% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,471,160K ÷ $21,726,200K
= 6.77%
Arrow Electronics Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA stands at 7.19%, showing a decrease from the prior year but still above the levels observed in 2020 and 2019. The 2022 operating ROA of 9.60% marked a significant improvement compared to 2021, where it was at 8.07%. The year 2020 saw a modest operating ROA of 5.36%, slightly lower than in 2019 at 5.57%.
Overall, the operating ROA performance indicates some variability but suggests that the company's ability to generate operating profits from its assets has generally been positive, with the recent drop in 2023 potentially warranting further investigation to understand the underlying reasons for the decline.
Peer comparison
Dec 31, 2023