Arrow Electronics Inc (ARW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 21,757,700 | 20,934,600 | 20,107,800 | 20,262,900 | 21,726,200 | 20,638,400 | 20,535,900 | 20,276,500 | 21,763,200 | 20,505,700 | 19,894,400 | 19,512,900 | 19,535,500 | 17,430,500 | 16,842,800 | 16,173,600 | 17,053,900 | 15,496,600 | 15,604,500 | 15,391,500 |
| Operating ROA | 3.53% | 4.25% | 5.25% | 6.09% | 6.77% | 8.13% | 8.96% | 9.77% | 9.50% | 10.04% | 9.85% | 9.06% | 7.97% | 7.84% | 7.12% | 6.53% | 5.25% | 5.23% | 4.78% | 0.00% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $768,557K ÷ $21,757,700K
= 3.53%
Operating Return on Assets (Operating ROA) is a key financial ratio that reflects the efficiency of a company in generating operating income from its assets. Looking at the trend for Arrow Electronics Inc, we observe a fluctuating pattern in the operating ROA over the reported periods.
Starting from March 31, 2020, where the operating ROA was reported as 0.00%, we see a gradual improvement in the ratio over the following quarters. From June 2020 to December 2022, the operating ROA consistently increased, reaching its peak at 10.04% on September 30, 2022. This upward trend indicates improved efficiency in utilizing the company's assets to generate operating income during this period.
However, beginning from December 31, 2022, the operating ROA experienced a decline, dropping to 3.53% by the end of December 31, 2024. This decreasing trend suggests a potential decline in the company's efficiency in generating operating income relative to its assets during the latter part of the reported periods.
Overall, while Arrow Electronics Inc demonstrated significant improvement in its operating ROA from 2020 to 2022, it faced challenges in maintaining this performance in the subsequent quarters up to 2024. Further analysis and investigation into the company's operational strategies and asset management practices may be required to understand the factors influencing these fluctuations in the operating ROA.
Peer comparison
Dec 31, 2024