Arrow Electronics Inc (ARW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 12.53% | 12.62% | 12.76% | 12.89% | 13.03% | 13.11% | 13.08% | 12.74% | 12.19% | 11.59% | 11.16% | 11.06% | 11.13% | 11.21% | 11.31% | 11.25% | 11.41% | 11.70% | 11.96% | 12.33% |
| Operating profit margin | 4.44% | 4.85% | 5.13% | 5.38% | 5.57% | 5.59% | 5.43% | 5.03% | 4.52% | 4.03% | 3.68% | 3.44% | 3.12% | 2.94% | 2.72% | 0.00% | 0.37% | 0.69% | 1.07% | 3.86% |
| 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% |
| Net profit margin | 2.73% | 3.06% | 3.35% | 3.63% | 3.84% | 3.93% | 3.87% | 3.60% | 3.21% | 2.87% | 2.60% | 2.42% | 2.04% | 1.67% | 1.41% | -1.05% | -0.71% | -0.29% | -0.00% | 2.40% |
Arrow Electronics Inc.'s profitability ratios have shown a downward trend in the recent quarters. The gross profit margin has decreased from 13.03% in Q4 2022 to 12.53% in Q4 2023, indicating a decline in the company's ability to generate profit after accounting for the cost of goods sold.
Similarly, the operating profit margin has also decreased from 5.63% in Q4 2022 to 4.72% in Q4 2023, suggesting a decrease in the efficiency of Arrow Electronics Inc.'s operations in generating profits from its core business activities.
The pretax margin and net profit margin have also shown a downward trend, reflecting a decrease in the company's overall profitability. The pretax margin decreased from 5.08% in Q4 2022 to 3.52% in Q4 2023, while the net profit margin decreased from 3.84% in Q4 2022 to 2.73% in Q4 2023.
Overall, Arrow Electronics Inc.'s profitability ratios suggest a decline in profitability over the recent quarters, indicating potential challenges in maintaining and improving the company's financial performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 0.66% | 1.30% | 2.00% | 6.87% |
| Return on assets (ROA) | 4.16% | 5.13% | 5.85% | 6.59% | 6.56% | 7.06% | 7.02% | 6.49% | 5.67% | 5.58% | 5.04% | 4.58% | 3.43% | 2.97% | 2.48% | -1.92% | -1.24% | -0.54% | -0.01% | 4.27% |
| Return on total capital | 18.48% | 20.70% | 19.87% | 21.41% | 23.70% | 24.40% | 23.91% | 21.66% | 20.68% | 18.93% | 17.02% | 14.95% | 12.45% | 11.79% | 10.99% | 0.01% | 1.45% | 2.67% | 4.05% | 12.82% |
| Return on equity (ROE) | 15.56% | 19.29% | 21.52% | 24.15% | 25.73% | 27.62% | 26.15% | 23.59% | 20.98% | 18.79% | 16.44% | 14.38% | 11.48% | 9.63% | 8.23% | -6.43% | -4.24% | -1.82% | -0.02% | 13.17% |
Arrow Electronics Inc.'s profitability ratios show a consistent pattern of performance over the last eight quarters. The operating return on assets (Operating ROA) has been gradually decreasing from 10.12% in Q3 2022 to 7.19% in Q4 2023, indicating a decline in the company's ability to generate profit from its assets through operations.
Similarly, the Return on Assets (ROA) has also been on a downward trend, falling from 7.06% in Q3 2022 to 4.16% in Q4 2023, suggesting a decrease in the company's overall profitability in relation to its total assets.
On the other hand, the Return on Total Capital and Return on Equity (ROE) have shown a more fluctuating trend but with an overall increasing pattern. The Return on Total Capital has increased from 22.43% in Q4 2022 to 16.24% in Q4 2023, indicating an enhanced ability to generate earnings relative to the total capital deployed.
Likewise, the Return on Equity (ROE) has surged from 27.62% in Q3 2022 to 15.56% in Q4 2023, showcasing an improvement in profitability for the company's shareholders.
Overall, these ratios suggest that while Arrow Electronics Inc. has shown some variability in its profitability metrics, there is room for improvement, particularly in enhancing the efficiency of asset utilization and optimizing overall profitability.