Arrow Electronics Inc (ARW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 5,761,150 | 5,805,460 | 5,546,360 | 5,282,300 | 5,089,320 |
| ROE | 6.81% | 15.56% | 25.73% | 20.98% | 11.48% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $392,074K ÷ $5,761,150K
= 6.81%
The return on equity (ROE) for Arrow Electronics Inc has fluctuated over the past five years, indicating varying levels of profitability relative to shareholders' equity.
- In 2020, the ROE was 11.48%, suggesting that for every dollar of shareholders' equity, the company generated a return of 11.48%.
- By the end of 2021, the ROE increased significantly to 20.98%, reflecting improved profitability and efficiency in managing shareholders' equity.
- The following year, in 2022, the ROE continued to rise to 25.73%, indicating that the company was able to generate a higher return on equity compared to the previous year.
- However, in 2023, the ROE dropped to 15.56%, showing a slight decline in profitability compared to the peak in 2022.
- By the end of 2024, the ROE decreased further to 6.81%, signaling a significant decline in the company's ability to generate profits relative to shareholders' equity.
Overall, Arrow Electronics Inc's ROE trend displays a mix of improvements and setbacks in profitability and efficiency in utilizing shareholders' equity over the five-year period. It is important for the company to analyze the factors contributing to these fluctuations to sustain and enhance its return on equity in the future.
Peer comparison
Dec 31, 2024