Arrow Electronics Inc (ARW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 5,805,460 | 5,546,360 | 5,282,300 | 5,089,320 | 4,811,920 |
| ROE | 15.56% | 25.73% | 20.98% | 11.48% | -4.24% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $903,505K ÷ $5,805,460K
= 15.56%
Arrow Electronics Inc.'s Return on Equity (ROE) has shown fluctuations over the five-year period, ranging from a low of -4.24% in 2019 to a high of 25.73% in 2022. In 2023, the ROE stood at 15.56%, reflecting a decrease compared to the prior year.
The declining trend in ROE from 2022 to 2023 indicates a potential decrease in the company's ability to generate profits from its shareholders' equity. This could be attributed to various factors such as changes in profitability, leverage, or asset management efficiency.
It is essential for Arrow Electronics Inc. to assess the factors contributing to the fluctuating ROE and take appropriate measures to improve the metric. A sustainable increase in ROE over time is indicative of improved profitability and efficiency in utilizing shareholder funds to generate earnings.
Peer comparison
Dec 31, 2023