Avnet Inc (AVT)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 10.74% | 10.99% | 11.19% | 11.40% | 11.64% | 11.89% | 12.04% | 12.10% | 11.99% | 11.93% | 11.95% | 12.07% | 12.20% | 12.22% | 11.98% | 11.69% | 11.47% | 11.21% | 11.32% | 11.48% |
| Operating profit margin | 2.63% | 2.86% | 3.08% | 3.36% | 3.72% | 3.94% | 4.25% | 4.40% | 4.47% | 4.51% | 4.36% | 4.17% | 3.86% | 3.33% | 2.71% | 2.11% | 1.44% | 0.90% | -0.21% | -0.28% |
| Pretax margin | 1.13% | 1.56% | 1.64% | 1.87% | 2.66% | 2.91% | 3.37% | 3.88% | 3.70% | 3.95% | 3.97% | 3.67% | 3.43% | 2.92% | 2.31% | 1.67% | 0.89% | 0.35% | -0.91% | -1.05% |
| Net profit margin | 1.08% | 1.43% | 1.41% | 1.51% | 2.10% | 2.31% | 2.62% | 3.05% | 2.90% | 3.27% | 3.26% | 3.00% | 2.85% | 2.29% | 2.11% | 1.59% | 0.99% | 0.87% | -0.43% | -0.52% |
The analysis of Avnet Inc.'s profitability ratios over the specified periods indicates a general trend of moderate profitability with some fluctuations.
Starting with the gross profit margin, there is a relatively stable upward trend from approximately 11.48% in September 2020 to a peak near 12.10% in September 2023. Although minor declines are observed, such as the slight decrease to 11.64% by June 2024 and further to 11.40% in September 2024, the gross margin remains within a consistent range, suggesting stable efficiency in managing direct costs relative to revenues.
The operating profit margin demonstrates a more variable pattern. It was initially negative in September 2020, at -0.28%, indicating operational losses at that time. Subsequently, it improved steadily, reaching a peak of approximately 4.51% in March 2023. This upward movement signals improved operational efficiency and cost management. However, after this peak, a gradual decline appears, with margins decreasing to around 2.63% by June 2025. The consistent positive values after the initial period point towards ongoing operational profitability, albeit with some deceleration in recent periods.
Pre-tax margins follow a similar trajectory, starting negative in 2020, turning positive by March 2021, and generally improving through 2022 and into early 2023, reaching approximately 3.95%. Recent declines are observed, with pre-tax margins decreasing to around 1.13% in June 2025, which indicates reduced profitability before taxation but remains positive, implying continued income generation ahead of tax considerations.
Net profit margins mirror this trend, moving from negative figures in 2020 to positive values in subsequent periods. After peaking around 3.27% in March 2023, these margins have faced a downward trend, falling to approximately 1.08% in June 2025. This suggests that while the company has maintained profitability, the net margins are narrowing, which could be attributed to increased expenses, tax impacts, or other financial factors.
In summary, Avnet Inc. has demonstrated resilience with steady gross profit margins and a trajectory toward operational and pre-tax profitability following earlier losses. Although recent periods show a decline in profitability margins at the net, operating, and pre-tax levels, the ratios remain in positive territory, indicating that the company continues to generate profit across its operations despite some recent pressures impacting overall profitability ratios.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.81% | 5.41% | 5.80% | 6.14% | 7.22% | 7.92% | 8.37% | 9.09% | 9.51% | 9.81% | 9.63% | 9.68% | 9.04% | 7.90% | 6.11% | 4.68% | 3.15% | 1.98% | -0.46% | -0.58% |
| Return on assets (ROA) | 1.98% | 2.70% | 2.66% | 2.77% | 4.07% | 4.64% | 5.15% | 6.29% | 6.18% | 7.12% | 7.20% | 6.98% | 6.66% | 5.43% | 4.75% | 3.51% | 2.16% | 1.91% | -0.92% | -1.09% |
| Return on total capital | 9.92% | 12.27% | 13.12% | 14.12% | 18.64% | 20.38% | 23.08% | 26.73% | 25.96% | 26.90% | 27.21% | 26.29% | 22.27% | 18.09% | 14.01% | 10.40% | 6.42% | 3.98% | -1.64% | -2.00% |
| Return on equity (ROE) | 4.79% | 6.49% | 6.56% | 6.92% | 10.12% | 11.45% | 13.37% | 16.50% | 16.22% | 18.60% | 19.38% | 19.04% | 16.51% | 12.47% | 10.82% | 7.80% | 4.73% | 4.06% | -1.95% | -2.43% |
The analysis of Avnet Inc.'s profitability ratios over the specified period reveals a general trend of recovery and subsequent decline in financial performance indicators, with some fluctuations.
Starting with the Operating Return on Assets (Operating ROA), the data indicates a significant negative value at the close of September 2020 (-0.58%) and December 2020 (-0.46%). This period reflects operating inefficiencies or adverse market conditions potentially associated with the early phase of the COVID-19 pandemic. The ratio then demonstrated a steady recovery, turning positive by March 2021 (1.98%) and illustrating sustained growth throughout 2021 and 2022, reaching a peak of approximately 9.68% in September 2022. Post-September 2022, the Operating ROA exhibits a declining trend, with figures decreasing to 8.37% in December 2023 and further down to 4.81% projected for June 2025, indicating diminishing operating efficiency or profitability.
The Return on Assets (ROA), which accounts for net income relative to total assets, mirrors similar recovery and decline patterns. It started with negative values at the end of 2020 (-1.09% and -0.92%), transitioned into positive territory by March 2021 (1.91%), and climbed steadily to a high of 6.98% in September 2022. Post-September 2022, the ROA shows a downtrend, falling to approximately 2.66% by December 2024, signaling reduced net profitability attributed to shrinking asset efficiency or margins.
The Return on Total Capital demonstrates a more pronounced recovery, moving from negative results at the end of 2020 (-2.00% and -1.64%) to substantial positive peaks in early 2022 (18.09%) and September 2022 (26.29%). Subsequently, it exhibits a downward trend, with a decreasing magnitude to 9.92% by June 2025, suggesting a reduction in overall profitability from capital investments over time.
The Return on Equity (ROE) reveals similar characteristics. After negative or near-zero performance in 2020 (-2.43% at September 2020, -1.95% at December 2020), the ratio improves markedly through 2021, reaching a peak of 19.38% in December 2022. Following that period, general decline is observed, with ROE decreasing to approximately 4.79% projected by June 2025, indicating that the company's profitability attributable to shareholders has diminished over the period.
In summary, Avnet Inc.'s profitability ratios experienced a post-pandemic recovery, achieving positive highs in late 2021 and 2022, but these gains have been gradually eroded in subsequent periods. The trend suggests periods of operational improvement followed by a slowdown in profitability, possibly reflecting market conditions, operational challenges, or strategic shifts affecting overall financial performance.