Avnet Inc (AVT)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 622,570 | 896,917 | 1,186,800 | 939,011 | 281,408 |
| Total assets | US$ in thousands | 12,118,600 | 12,209,100 | 12,477,200 | 10,388,500 | 8,925,420 |
| Operating ROA | 5.14% | 7.35% | 9.51% | 9.04% | 3.15% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $622,570K ÷ $12,118,600K
= 5.14%
The analysis of Avnet Inc.'s operating return on assets (ROA) over the observed period reveals notable fluctuations that illustrate the company's evolving operational efficiency. As of June 30, 2021, the operating ROA stood at 3.15%, indicating relatively modest profitability generated from the company's asset base during that period. Between this date and June 30, 2022, the operating ROA experienced a significant increase to 9.04%, representing a substantial improvement in operational efficiency and asset utilization. This upward trend continued into June 30, 2023, where the operating ROA marginally increased to 9.51%, suggesting sustained operational performance at a high level.
However, post-2023, a downward correction is evident. By June 30, 2024, the operating ROA declined to 7.35%, signaling some degree of reduction in operational profitability relative to the assets employed. The decline persisted into June 30, 2025, with the ratio decreasing further to 5.14%, which may reflect increased challenges in maintaining previous levels of operational efficiency or changes in the asset base or operating margins.
Overall, the trend suggests that Avnet Inc. experienced a robust period of improved operational performance culminating in 2023, followed by a decline in subsequent years. This pattern might be attributable to broader macroeconomic factors, shifts in market conditions, or internal operational dynamics. Continued monitoring and analysis of underlying factors influencing these ratios are essential for a comprehensive understanding of the company's operational health and future prospects.
Peer comparison
Jun 30, 2025