Avnet Inc (AVT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 5,011,500 | 4,925,500 | 4,751,670 | 4,192,760 | 4,084,180 |
| ROE | 4.79% | 10.12% | 16.22% | 16.51% | 4.73% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $240,217K ÷ $5,011,500K
= 4.79%
The return on equity (ROE) of Avnet Inc has demonstrated notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ROE stood at 4.73%, indicating relatively modest profitability relative to shareholder equity. This figure experienced a significant increase by June 30, 2022, reaching 16.51%, which suggests a substantial improvement in net profitability and efficient utilization of shareholders' equity during that year. The elevated ROE persisted into June 30, 2023, with a slight decline to 16.22%, indicating sustained but slightly reduced profitability levels compared to the previous year.
However, a downward trend is evident in the subsequent period, with the ROE decreasing to 10.12% as of June 30, 2024. This decline suggests a decrease in profitability or potentially an increase in shareholders’ equity without a proportional increase in net income. By June 30, 2025, the ROE further diminished to 4.79%, approaching the levels observed in 2021, signaling a potential erosion in the company's efficiency or profitability relative to shareholders' equity.
Overall, the data reflect a period of improved profitability in 2022 and 2023, followed by a significant decline in 2024 and 2025. The decrease could be attributed to various factors such as changes in net income, equity structure, or operational efficiencies. These movements underline the importance of examining underlying earnings quality, capital management, and market conditions to understand the drivers behind the ROE trends comprehensively.
Peer comparison
Jun 30, 2025