Arrow Electronics (MEX:ARW) Operating Income: MXN21,158 Mil (TTM As of Mar. 2026)

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MEX:ARW Arrow Electronics Inc MEX:ARW
81 GF Score
Price MXN2,665.00
GF Value MXN1,889.14
! 10 Warning Signs
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What is Arrow Electronics Operating Income?

Arrow Electronics MEX:ARW 81 Operating Income is MXN21,158 Mil as of Mar. 2026. GuruFocus rates MEX:ARW with a GF Score™ of 81/100 and a GF Value™ of MXN1,889.14. The stock has 10 warning signs investors should review.

Arrow Electronics's Operating Income for the three months ended in Mar. 2026 was MXN7,182 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN21,158 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arrow Electronics's Operating Income for the three months ended in Mar. 2026 was MXN7,182 Mil. Arrow Electronics's Revenue for the three months ended in Mar. 2026 was MXN170,834 Mil. Therefore, Arrow Electronics's Operating Margin % for the quarter that ended in Mar. 2026 was 4.20%.

Warning Sign:

Arrow Electronics Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4%.

Arrow Electronics's 5-Year average Growth Rate for Operating Margin % was -4.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Arrow Electronics's annualized ROC % for the quarter that ended in Mar. 2026 was 12.61%. Arrow Electronics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 21.02%.


Arrow Electronics  (MEX:ARW) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Arrow Electronics's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=28727.244 * ( 1 - 23.18% )/( (178735.634 + 171193.149)/ 2 )
=22068.2688408/174964.3915
=12.61 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=523572.23 - 339318.443 - ( 5518.153 - max(0, 339324.583 - 462026.82+5518.153))
=178735.634

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=648347.155 - 471987.421 - ( 5166.585 - max(0, 474031.807 - 587058.913+5166.585))
=171193.149

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Arrow Electronics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=25660.1/( ( (8546.406 + max(117190.224, 0)) + (8502.256 + max(109904.906, 0)) )/ 2 )
=25660.1/( ( 125736.63 + 118407.162 )/ 2 )
=25660.1/122071.896
=21.02 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(355408.499 + 91502.501 + 9597.667) - (339318.443 + 0 + -5.8207660913467E-11)
=117190.224

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(468150.405 + 103195.841 + 10546.082) - (471987.421 + 0 + 0.00099999998928979)
=109904.906

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Arrow Electronics's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=7181.811/170833.649
=4.20 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Arrow Electronics Operating Income Related Terms


Arrow Electronics Operating Income Historical Data

* Premium members only.

The historical data trend for Arrow Electronics's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arrow Electronics Operating Income Chart

Arrow Electronics Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32,252.42 40,595.25 26,396.31 19,009.43 16,895.51

Arrow Electronics Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3,597.90 4,001.30 3,937.67 6,037.60 7,181.81
MEX:ARW
81GF Score
Arrow Electronics Inc MEX:ARW
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Arrow Electronics Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN21,158 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of MXN21,158 Mil mean?
Arrow Electronics (MEX:ARW) has a Operating Income of MXN21,158 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Arrow Electronics and its competitors.
Is Arrow Electronics' Operating Income too high?
Arrow Electronics' current Operating Income is MXN21,158 Mil. Overall, Arrow Electronics has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Arrow Electronics' Operating Income compare to AVT and NSIT?
Arrow Electronics' Operating Income of MXN21,158 Mil can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Hardware company?
A good Operating Income depends on the Hardware industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Arrow Electronics and its competitors. Arrow Electronics's current Operating Income is MXN21,158 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arrow Electronics stock overvalued right now?
Arrow Electronics (MEX:ARW) has a current Operating Income of MXN21,158 Mil. The stock's GF Value™ is MXN1,889.14, compared to a current price of MXN2,665.00 — trading 41.1% above its estimated fair value. The current Operating Income is MXN21,158 Mil. Arrow Electronics' overall GF Score™ is 81/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Arrow Electronics (MEX:ARW), the current Operating Income is MXN21,158 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Arrow Electronics (MEX:ARW) Overvalued in 2026?

Based on GuruFocus' analysis, Arrow Electronics stock appears to be overvalued. The current stock price of MXN2,665.00 is trading 41.1% above its estimated GF Value™ of MXN1,889.14.

Key valuation signals for MEX:ARW:

  • Operating Income: MXN21,158 Mil
  • GF Value™: MXN1,889.14 vs. price of MXN2,665.00 (41.1% above fair value)
  • GF Score™: 81/100 with 10 warning signs

No single metric tells the full story. See the MEX:ARW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arrow Electronics Business Description

Address 9151 East Panorama Circle, Centennial, CO, USA, 80112
Arrow Electronics Inc. is a provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. It has one of the world's broadest portfolios of product offerings available from electronic components and enterprise computing solutions suppliers, coupled with a range of services, solutions, and software, the company helps industrial and commercial customers introduce products, reduce their time to market, and enhance their overall competitiveness. The company has two business segments, the global components business and the global enterprise computing solutions.
81GF Score

Get the complete analysis for MEX:ARW

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN2,665.00
Price
MXN1,889.14
GF Value