Arrow Electronics Inc (ARW)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 392,074 | 487,403 | 585,495 | 713,356 | 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 |
| Total stockholders’ equity | US$ in thousands | 5,761,150 | 5,963,100 | 5,743,300 | 5,699,150 | 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 |
| ROE | 6.81% | 8.17% | 10.19% | 12.52% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $392,074K ÷ $5,761,150K
= 6.81%
Arrow Electronics Inc's return on equity (ROE) has shown a fluctuating trend over the past few years. ROE started low at -6.43% as of March 31, 2020, indicating the company's initial challenges in generating profits relative to shareholders' equity. However, there was a significant improvement in ROE by December 31, 2021, reaching 20.98%, suggesting enhanced profitability and efficient use of shareholder funds.
Subsequently, ROE continued to increase, reaching its peak at 27.62% as of September 30, 2022. This demonstrates the company's ability to generate more profit with the same level of equity investment, reflecting strong operational performance and effective management.
However, there was a slight decrease in ROE to 6.81% by December 31, 2024. This decline may indicate challenges in maintaining profit levels relative to the equity base, potentially due to operational issues or changes in the economic environment.
Overall, Arrow Electronics Inc's ROE performance has been mixed, with periods of significant improvement followed by slight declines. It is essential for investors and analysts to closely monitor ROE trends to assess the company's profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2024