Arrow Electronics Inc (ARW)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,158,500 | 1,875,880 | 1,434,100 | 757,233 | -115,749 |
| Revenue | US$ in thousands | 33,107,100 | 37,124,400 | 34,477,000 | 28,673,400 | 28,916,800 |
| Pretax margin | 3.50% | 5.05% | 4.16% | 2.64% | -0.40% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,158,500K ÷ $33,107,100K
= 3.50%
Arrow Electronics Inc.'s pretax margin has shown some fluctuations over the past five years. The pretax margin measures the company's ability to generate profit before accounting for taxes on each dollar of revenue.
In 2023, the pretax margin was 3.52%, showing a decrease from the 2022 level of 5.08%. This decline may indicate a decrease in profitability during the year. Despite the decrease from the previous year, the pretax margin in 2023 was still higher compared to 2021 and 2020, which stood at 4.17% and 2.65%, respectively.
In 2019, the pretax margin was negative at -0.39%, suggesting that the company was not profitable before considering taxes on its revenue. However, it is noteworthy that Arrow Electronics Inc. was able to turn this negative pretax margin around and consistently improve it over the next four years.
Overall, the trend in Arrow Electronics Inc.'s pretax margin has been somewhat volatile, indicating fluctuations in its profitability levels. It is essential for the company to continue monitoring and managing its costs effectively to sustain and improve its pretax margin in the future.
Peer comparison
Dec 31, 2023