Arrow Electronics Inc (ARW)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 392,074 | 903,505 | 1,426,880 | 1,108,200 | 584,438 |
| Total assets | US$ in thousands | 21,757,700 | 21,726,200 | 21,763,200 | 19,535,500 | 17,053,900 |
| ROA | 1.80% | 4.16% | 6.56% | 5.67% | 3.43% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $392,074K ÷ $21,757,700K
= 1.80%
Arrow Electronics Inc has experienced fluctuations in its return on assets (ROA) over the past five years. The ROA increased from 3.43% as of December 31, 2020, to 6.56% as of December 31, 2022, indicating improved efficiency in generating profits from its assets. However, in the subsequent years, the ROA declined to 4.16% as of December 31, 2023, and further decreased to 1.80% as of December 31, 2024.
The downward trend in ROA from 2022 to 2024 suggests potential challenges in effectively utilizing the company's assets to generate profits. Arrow Electronics Inc may need to assess its asset management strategies and operational efficiencies to enhance its ROA and overall financial performance in the future.
Peer comparison
Dec 31, 2024