Arrow Electronics (LTS:0HI1) ROCE %: 16.18% (As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LTS:0HI1 Arrow Electronics Inc LTS:0HI1
74 GF Score
Price $201.53
GF Value $152.63
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Arrow Electronics ROCE %?

Arrow Electronics LTS:0HI1 -9.74% 74 ROCE % is 16.18% as of Jun. 2026. GuruFocus rates LTS:0HI1 with a GF Score™ of 74/100 and a GF Value™ of $152.63 (Significantly Overvalued). The stock has 4 warning signs investors should review.

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 Jun. 2026 was 16.18%.

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

Arrow Electronics ROCE % Historical Data

* Premium members only.

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.

Arrow Electronics ROCE % Chart

Arrow Electronics Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.44 23.54 16.67 8.60 9.64

Arrow Electronics Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROCE % 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 12.98 7.59 11.68 14.30 16.18
LTS:0HI1
74GF Score
Arrow Electronics Inc LTS:0HI1
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arrow Electronics ROCE % Calculation

Arrow Electronics's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=933.032/( ( (21757.707 - 12636.162) + (29078.138 - 18845.398) )/ 2 )
=933.032/( (9121.545+10232.74)/ 2 )
=933.032/9677.1425
=9.64 %

Arrow Electronics's ROCE % of for the quarter that ended in Jun. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=1561.772/( ( (35953.97 - 26287.345) + (38376.681 - 28742.218) )/ 2 )
=1561.772/( ( 9666.625 + 9634.463 )/ 2 )
=1561.772/9650.544
=16.18 %

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

* 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 ROCE % →
What does a ROCE % of 16.18% mean?
Arrow Electronics (LTS:0HI1) has a ROCE % of 16.18% as of Jun. 2026.
Is Arrow Electronics' ROCE % too high?
Arrow Electronics' current ROCE % is 16.18%. The Hardware industry median ROCE % is 5.85. Arrow Electronics' value of 16.18% is 176.8% above this industry median. Overall, Arrow Electronics has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arrow Electronics' ROCE % compare to AVT and NSIT?
Arrow Electronics' ROCE % of 16.18% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.85. Arrow Electronics' value of 16.18% is 176.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Hardware company?
The median ROCE % among Hardware companies is 5.85, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arrow Electronics's current ROCE % of 16.18% is 176.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arrow Electronics's current ROCE % is 16.18%. 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?
Based on GuruFocus' analysis, Arrow Electronics (LTS:0HI1) is currently considered Significantly Overvalued. The stock's GF Value™ is $152.63, compared to a current price of $201.53 — trading 32% above its estimated fair value. The current ROCE % is 16.18% and 176.8% above the Hardware industry median of 5.85. Arrow Electronics' overall GF Score™ is 74/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Arrow Electronics (LTS:0HI1), the current ROCE % is 16.18% as of Jun. 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 (LTS:0HI1) Overvalued in 2026?

Based on GuruFocus' analysis, Arrow Electronics stock appears to be overvalued. The current stock price of $201.53 is trading 32% above its estimated GF Value™ of $152.63. GuruFocus considers Arrow Electronics to be Significantly Overvalued.

Key valuation signals for LTS:0HI1:

  • ROCE %: 16.18%
  • GF Value™: $152.63 vs. price of $201.53 (32% above fair value)
  • GF Score™: 74/100 with 4 warning signs
  • Industry Position: 176.8% above the Hardware median

No single metric tells the full story. See the LTS:0HI1 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.
74GF Score

Get the complete analysis for LTS:0HI1

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

$201.53
Price
$152.63
GF Value