Arrow Electronics Inc (ARW)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 903,505 | 1,058,370 | 1,202,110 | 1,335,885 | 1,426,884 | 1,448,690 | 1,396,318 | 1,266,625 | 1,108,197 | 973,060 | 849,093 | 741,256 | 584,438 | 460,380 | 386,451 | -295,319 | -204,087 | -85,447 | -1,045 | 717,836 |
| Total stockholders’ equity | US$ in thousands | 5,805,460 | 5,485,260 | 5,586,340 | 5,530,530 | 5,546,360 | 5,245,750 | 5,340,470 | 5,369,950 | 5,282,300 | 5,178,480 | 5,164,920 | 5,155,760 | 5,089,320 | 4,781,060 | 4,694,820 | 4,595,120 | 4,811,920 | 4,690,820 | 4,768,720 | 5,449,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $903,505K ÷ $5,805,460K
= 15.56%
Arrow Electronics Inc.'s return on equity (ROE) has shown a declining trend over the last year based on the quarterly data provided. The ROE decreased from 25.73% in Q4 2022 to 15.56% in Q4 2023. This downward trend indicates a decrease in the company's ability to generate profits from its shareholders' equity during this period.
The ROE peaked at 27.62% in Q3 2022 but gradually declined in subsequent quarters. This decrease could suggest inefficiencies in asset utilization or higher financial leverage, which may impact the company's profitability and overall shareholder value.
While a ROE of 15.56% in Q4 2023 is still positive, it is important for investors and stakeholders to monitor this metric closely to understand the factors driving this decline and assess the company's financial health and performance over time. Further analysis of the company's profitability, asset management, and financial leverage ratios may provide additional insights into Arrow Electronics Inc.'s overall operational efficiency and competitive position in the industry.
Peer comparison
Dec 31, 2023