Arrow Electronics Inc (ARW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 107,696 | 203,968 | 321,060 | 1,157,077 |
| Long-term debt | US$ in thousands | 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 | 2,640,130 | 2,942,290 | 3,157,270 | 3,575,890 |
| 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 |
| Return on total capital | 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% | 1.45% | 2.67% | 4.05% | 12.82% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,471,164K ÷ ($2,153,550K + $5,805,460K)
= 18.48%
Arrow Electronics Inc.'s return on total capital has shown a decreasing trend over the past eight quarters, declining from 22.43% in Q4 2022 to 16.24% in Q4 2023. This indicates a reduction in the company's ability to generate returns from its total capital employed in its operations. Despite this declining trend, the return on total capital remains above 15% in all quarters, suggesting that Arrow Electronics Inc. is still able to generate satisfactory returns relative to the capital invested. However, management may need to closely monitor and address the factors contributing to the decreasing trend to ensure sustained profitability and efficient capital allocation in the future.
Peer comparison
Dec 31, 2023