Arrow Electronics Inc (ARW)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 903,505 | 1,426,880 | 1,108,200 | 584,438 | -204,087 |
| Total assets | US$ in thousands | 21,726,200 | 21,763,200 | 19,535,500 | 17,053,900 | 16,400,800 |
| ROA | 4.16% | 6.56% | 5.67% | 3.43% | -1.24% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $903,505K ÷ $21,726,200K
= 4.16%
The return on assets (ROA) for Arrow Electronics Inc. has fluctuated over the past five years, as evidenced by the data provided. In 2023, the company's ROA stood at 4.16%, reflecting a decrease compared to the prior year's ROA of 6.56%. Despite this decline, the ROA in 2023 remains positive, indicating that the company is generating a return on its assets.
Looking further back, Arrow Electronics Inc. experienced a slight improvement in ROA from 2021 to 2022, with the metric increasing from 5.67% to 6.56%. This positive trend suggests that the company was able to utilize its assets more efficiently to generate earnings in 2022. In 2021, the ROA was 5.67%, indicating that the company was able to generate a return of 5.67% on its total assets during that period.
In 2020, Arrow Electronics Inc. had an ROA of 3.43%, which was an improvement compared to the negative ROA of -1.24% in 2019. The positive ROA in 2020 suggests that the company was able to turn its assets into profit more effectively that year.
Overall, Arrow Electronics Inc.'s ROA has shown variability over the past five years, with fluctuations across different periods. It is important for the company to focus on consistently improving its ROA to ensure efficient asset utilization and sustainable profitability.
Peer comparison
Dec 31, 2023