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

Company name
Symbol
ROE
Arrow Electronics Inc
ARW
15.56%
Avnet Inc
AVT
10.12%
TE Connectivity Ltd
TEL
25.24%