Avnet Inc (AVT)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 240,217 | 498,699 | 770,828 | 692,379 | 193,114 |
| Total assets | US$ in thousands | 12,118,600 | 12,209,100 | 12,477,200 | 10,388,500 | 8,925,420 |
| ROA | 1.98% | 4.08% | 6.18% | 6.66% | 2.16% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $240,217K ÷ $12,118,600K
= 1.98%
The analysis of Avnet Inc's return on assets (ROA) over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations and trends in the company's efficiency in generating net income from its asset base.
In fiscal year 2021, Avnet reported an ROA of 2.16%, indicating a relatively modest level of profitability relative to its total assets. This figure suggests that the company was only marginally effective at converting its asset investments into net income during that period.
By fiscal year 2022, the ROA increased substantially to 6.66%, reflecting improved operational efficiency and profitability. This sharp upward movement could be attributed to factors such as enhanced sales performance, cost management strategies, or other operational improvements, which collectively contributed to higher net income relative to assets.
The subsequent year, 2023, saw a slight decrease to 6.18%. Despite this slight decline, the ROA remained significantly higher than the 2021 level, indicating that the company maintained a relatively high efficiency in asset utilization. This stability suggests that the gains achieved in 2022 were largely preserved, although some moderation in profitability occurred.
In fiscal year 2024, the ROA declined further to 4.08%, signaling a reduction in the company's ability to generate income from its assets. This decrease could result from various factors such as increased asset base without a proportional increase in net income, market or operational challenges, or changes in the company's business model.
Looking forward to 2025, the ROA further contracted to 1.98%, approaching levels closer to those observed in 2021. This downward trend indicates a significant reduction in asset efficiency, potentially raising concerns over the company's ability to sustain previous profitability levels relative to its asset base. It may also prompt considerations of underlying operational challenges or shifts in strategic focus.
Overall, the trend in Avnet Inc's ROA over this period demonstrates initial improvement from 2021 to 2022, followed by a gradual and continuous decline through 2023 to 2025. The pattern highlights potential concerns regarding asset utilization and profitability sustainability in subsequent periods, warranting further analysis into underlying factors influencing these movements.
Peer comparison
Jun 30, 2025