Arrow Electronics Inc (ARW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 768,557 | 890,133 | 1,054,954 | 1,234,929 | 1,471,164 | 1,677,081 | 1,839,692 | 1,980,270 | 2,068,494 | 2,057,830 | 1,960,001 | 1,767,695 | 1,556,822 | 1,366,302 | 1,199,619 | 1,055,710 | 894,511 | 811,207 | 746,243 | 440 |
| Long-term debt | US$ in thousands | 2,773,780 | 2,363,240 | 2,479,310 | 2,632,250 | 2,153,550 | 2,615,000 | 3,672,830 | 3,719,060 | 3,182,960 | 3,187,020 | 2,856,490 | 2,790,820 | 2,244,440 | 2,039,760 | 1,884,390 | 1,903,850 | 2,097,940 | 2,097,740 | 2,098,370 | 2,222,790 |
| 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 |
| Return on total capital | 9.00% | 10.69% | 12.83% | 14.82% | 18.48% | 20.70% | 19.87% | 21.41% | 23.70% | 24.40% | 23.91% | 21.66% | 20.68% | 18.93% | 17.02% | 14.95% | 12.45% | 11.79% | 10.99% | 0.01% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $768,557K ÷ ($2,773,780K + $5,761,150K)
= 9.00%
Arrow Electronics Inc's return on total capital has shown a fluctuating trend over the periods mentioned. Starting at a low of 0.01% as of March 31, 2020, the return gradually improved, reaching a peak of 24.40% as of September 30, 2022. However, the ratio dropped to 9.00% by December 31, 2024. This indicates that the company's ability to generate profits from its total capital has been inconsistent over time. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024