Arrow Electronics (LTS:0HI1) ROCE % : 8.07% (As of Sep. 2024)

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What is Arrow Electronics ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Arrow Electronics's annualized ROCE % for the quarter that ended in Sep. 2024 was 8.07%.

Arrow Electronics ROCE % Historical Data

The historical data trend for Arrow Electronics's ROCE % 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.

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Arrow Electronics ROCE % Chart

Arrow Electronics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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1.07

11.16

19.44

23.54

16.67

Arrow Electronics Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															14.41	15.41	8.47	9.33	8.07

Arrow Electronics ROCE % Calculation

Arrow Electronics's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1493.078	/	( ( (21763.182 - 12389.604)	+	(21726.168 - 13187.884) )	/ 2 )
	=	1493.078	/	( (9373.578	+	8538.284)	/ 2 )
	=	1493.078	/	8955.931
	=	16.67 %

Arrow Electronics's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	716.168	/	( ( (20107.766 - 11318.673)	+	(20934.649 - 11970.848) )	/ 2 )
	=	716.168	/	( ( 8789.093	+	8963.801 )	/ 2 )
	=	716.168	/	8876.447
	=	8.07 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Arrow Electronics (LTS:0HI1) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Arrow Electronics ROCE % Related Terms

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Arrow Electronics Business Description

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ARW:USA ARW:Germany

Address

9201 East Dry Creek Road, Centennial, CO, USA, 80112

Website

https://investor.arrow.com

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 components business and the enterprise computing solutions.

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