Arrow Electronics Inc (ARW)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,158,496	1,376,257	1,573,256	1,749,064	1,875,876	1,888,801	1,813,858	1,643,865	1,434,103	1,250,470	1,088,281	947,185	757,233	631,293	541,997	-232,996	-115,749	-22,095	90,021	912,952
Revenue (ttm)	US$ in thousands	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	28,916,850	29,496,840	29,909,160	29,957,140
Pretax margin		3.50%	3.98%	4.39%	4.75%	5.05%	5.13%	5.03%	4.67%	4.16%	3.69%	3.33%	3.09%	2.64%	2.29%	1.98%	-0.83%	-0.40%	-0.07%	0.30%	3.05%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,158,496K ÷ $33,107,130K
= 3.50%

The pretax margin of Arrow Electronics Inc. has been showing a general decreasing trend over the past eight quarters. It declined from 5.08% in Q4 2022 to 3.52% in Q4 2023. The company experienced a peak pretax margin of 5.14% in Q3 2022, followed by a gradual decline. This downtrend suggests that Arrow Electronics Inc. may be facing challenges in generating profits before accounting for taxes and indicates a potential need for operational efficiency improvements to boost profitability.

Peer comparison

Dec 31, 2023

Company name

Symbol

Pretax margin

Arrow Electronics Inc

ARW

3.50%