Arrow Electronics, Inc. (ARW) 10-Year Financial Performance & Capital Metrics

ARW • • Industrial / General

TechnologyTech DistributorsBroadline Electronic Components DistributionGlobal Electronic Components Distributors

AboutArrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products, including capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.Show more

Revenue $27.92B -15.7%
EBITDA $932M -43.6%
Net Income $392M -56.6%
EPS (Diluted) 7.29 -54.0%
Gross Margin 11.79% -5.9%
EBITDA Margin 3.34% -33.2%
Operating Margin 2.75% -38.1%
Net Margin 1.4% -48.5%
ROE 6.7% -57.4%
ROIC 6.23% -47.3%
Debt/Equity 0.58 -10.2%
Interest Coverage 2.85 -36.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 16.2%
✓Share count reduced 5.7% through buybacks
✓Trading at only 1.1x book value
✓Efficient asset utilization: 1.3x turnover

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y2.06%

5Y-0.7%

3Y-6.79%

TTM3.16%

Profit (Net Income) CAGR

10Y-2.36%

5Y-

3Y-29.27%

TTM-2.37%

EPS CAGR

10Y3.88%

5Y-

3Y-21.55%

TTM1%

ROCE

10Y Avg12.91%

5Y Avg15.82%

3Y Avg16.22%

Latest8.7%

Peer Comparison

Global Electronic Components Distributors

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
AVTAvnet, Inc.	4.16B	51.16	18.60	-6.55%	1.04%	4.81%	13.87%	0.57
ARWArrow Electronics, Inc.	6.11B	118.65	16.28	-15.66%	1.62%	7.35%	16.98%	0.58

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	23.28B	23.83B	26.81B	29.68B	28.92B	28.67B	34.48B	37.12B	33.11B	27.92B
Revenue Growth %	0.02%	0.02%	0.13%	0.11%	-0.03%	-0.01%	0.2%	0.08%	-0.11%	-0.16%
Cost of Goods Sold+	20.25B	20.68B	23.46B	25.98B	25.62B	25.48B	30.27B	32.29B	28.96B	24.63B
COGS % of Revenue	0.87%	0.87%	0.87%	0.88%	0.89%	0.89%	0.88%	0.87%	0.87%	0.88%
Gross Profit+	3.04B	3.14B	3.36B	3.7B	3.3B	3.19B	4.2B	4.84B	4.15B	3.29B
Gross Margin %	0.13%	0.13%	0.13%	0.12%	0.11%	0.11%	0.12%	0.13%	0.13%	0.12%
Gross Profit Growth %	0.01%	0.04%	0.07%	0.1%	-0.11%	-0.03%	0.32%	0.15%	-0.14%	-0.21%
Operating Expenses+	2.14B	2.21B	2.32B	2.5B	3.19B	2.3B	2.65B	2.77B	2.68B	2.52B
OpEx % of Revenue	0.09%	0.09%	0.09%	0.08%	0.11%	0.08%	0.08%	0.07%	0.08%	0.09%
Selling, General & Admin	1.99B	2.05B	2.16B	2.31B	2.22B	2.09B	2.44B	2.57B	2.42B	2.22B
SG&A % of Revenue	0.09%	0.09%	0.08%	0.08%	0.08%	0.07%	0.07%	0.07%	0.07%	0.08%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-3M	159.19M	153.6M	-6.87M	974.22M	206.71M	205.33M	197.62M	261.25M	301.63M
Operating Income+	824.48M	858.54M	928.45M	1.15B	107.7M	894.51M	1.56B	2.07B	1.47B	768.56M
Operating Margin %	0.04%	0.04%	0.03%	0.04%	0%	0.03%	0.05%	0.06%	0.04%	0.03%
Operating Income Growth %	0.08%	0.04%	0.08%	0.24%	-0.91%	7.31%	0.74%	0.33%	-0.29%	-0.48%
EBITDA+	980.24M	1.02B	1.08B	1.33B	297.49M	1.08B	1.75B	2.26B	1.65B	931.55M
EBITDA Margin %	0.04%	0.04%	0.04%	0.04%	0.01%	0.04%	0.05%	0.06%	0.05%	0.03%
EBITDA Growth %	0.07%	0.04%	0.06%	0.23%	-0.78%	2.64%	0.62%	0.29%	-0.27%	-0.44%
D&A (Non-Cash Add-back)	155.75M	159.19M	153.6M	186.38M	189.79M	189.06M	195.12M	187.38M	181.12M	162.99M
EBIT	827.58M	866.83M	890.33M	1.12B	91.91M	896.47M	1.57B	2.07B	1.49B	956.03M
Net Interest Income+	-135.4M	-151.31M	-156.97M	-214.77M	-210.51M	-137.21M	-131.73M	-185.65M	-328.72M	-269.83M
Interest Income	0	0	0	0	54.81M	0	0	0	0	0
Interest Expense	135.4M	150.72M	156.97M	214.77M	265.33M	137.21M	131.73M	185.65M	328.72M	269.83M
Other Income/Expense	-132.3M	-161.43M	-251.82M	-238.14M	-219.53M	-135.25M	-120.45M	-184.34M	-306.81M	-279.24M
Pretax Income+	692.18M	715.4M	694.29M	909.37M	-111.83M	759.26M	1.44B	1.88B	1.16B	489.32M
Pretax Margin %	0.03%	0.03%	0.03%	0.03%	-0%	0.03%	0.04%	0.05%	0.04%	0.02%
Income Tax+	191.7M	190.67M	287.13M	187.8M	88.34M	172.79M	325.91M	448.99M	254.99M	95.81M
Effective Tax Rate %	0.72%	0.73%	0.58%	0.79%	1.82%	0.77%	0.77%	0.76%	0.78%	0.8%
Net Income+	497.73M	522.75M	401.96M	716.2M	-204.09M	584.44M	1.11B	1.43B	903.5M	392.07M
Net Margin %	0.02%	0.02%	0.01%	0.02%	-0.01%	0.02%	0.03%	0.04%	0.03%	0.01%
Net Income Growth %	-0%	0.05%	-0.23%	0.78%	-1.28%	3.86%	0.9%	0.29%	-0.37%	-0.57%
Net Income (Continuing)	500.49M	524.72M	407.38M	721.57M	-200.17M	586.46M	1.11B	1.44B	909.36M	393.51M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	52.37M	52.18M	48.69M	51.38M	54.47M	59.63M	58.55M	65M	71.84M	70.38M
EPS (Diluted)+	5.20	5.68	4.48	8.10	-2.40	7.43	15.10	21.80	15.84	7.29
EPS Growth %	0.04%	0.09%	-0.21%	0.81%	-1.3%	4.1%	1.03%	0.44%	-0.27%	-0.54%
EPS (Basic)	5.26	5.75	4.53	8.19	-2.40	7.49	15.29	22.01	16.03	7.36
Diluted Shares Outstanding	95.69M	92.03M	89.77M	88.44M	83.57M	78.64M	73.39M	65.45M	57.03M	53.8M
Basic Shares Outstanding	94.61M	90.96M	88.68M	87.48M	83.57M	77.99M	72.47M	64.84M	56.36M	53.28M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	9.19B	10.32B	12.42B	13.61B	12.53B	13.15B	15.89B	18.34B	18.33B	18.4B
Cash & Short-Term Investments	273.09M	534.32M	730.08M	509.33M	300.1M	373.62M	222.19M	176.91M	218.05M	188.81M
Cash Only	273.09M	534.32M	730.08M	509.33M	300.1M	373.62M	222.19M	176.91M	218.05M	188.81M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	6.16B	6.75B	8.17B	8.95B	8.48B	9.21B	11.12B	12.32B	12.24B	13.03B
Days Sales Outstanding	96.59	103.36	111.23	110.02	107.07	117.18	117.77	121.15	134.92	170.33
Inventory	2.47B	2.86B	3.3B	3.88B	3.48B	3.29B	4.2B	5.32B	5.19B	4.71B
Days Inventory Outstanding	44.46	50.4	51.39	54.5	49.54	47.09	50.66	60.13	65.38	69.79
Other Current Assets	285.47M	180.07M	214.07M	274.83M	266.25M	286.63M	345.22M	521.34M	684.13M	471.91M
Total Non-Current Assets+	3.84B	3.89B	4.05B	4.18B	3.87B	3.9B	3.64B	3.42B	3.4B	3.36B
Property, Plant & Equipment	700.18M	756.3M	838.48M	824.7M	803.11M	799.61M	682.81M	596.46M	530.74M	469.26M
Fixed Asset Turnover	33.25x	31.50x	31.98x	35.98x	36.01x	35.86x	50.49x	62.24x	62.38x	59.51x
Goodwill	2.37B	2.39B	2.47B	2.62B	2.06B	2.12B	2.08B	2.03B	2.05B	2.06B
Intangible Assets	389.33M	336.88M	286.21M	372.64M	271.9M	233.82M	195.03M	159.14M	127.44M	96.71M
Long-Term Investments	73.38M	88.4M	88.35M	83.69M	86.94M	76.36M	63.7M	65.11M	62.74M	57.3M
Other Non-Current Assets	303.75M	41.62M	361.97M	270.42M	651.36M	675.76M	620.31M	574.51M	627.34M	677.73M
Total Assets+	13.02B	14.21B	16.46B	17.78B	16.4B	17.05B	19.54B	21.76B	21.73B	21.76B
Asset Turnover	1.79x	1.68x	1.63x	1.67x	1.76x	1.68x	1.76x	1.71x	1.52x	1.28x
Asset Growth %	0.05%	0.09%	0.16%	0.08%	-0.08%	0.04%	0.15%	0.11%	-0%	0%
Total Current Liabilities+	6.06B	6.69B	7.96B	8.79B	8.26B	9.13B	11.33B	12.39B	13.19B	12.64B
Accounts Payable	5.19B	5.77B	6.76B	7.63B	7.05B	7.94B	9.62B	10.46B	10.07B	11.05B
Days Payables Outstanding	93.61	101.91	105.15	107.24	100.39	113.7	115.95	118.25	126.93	163.71
Short-Term Debt	44.02M	93.83M	356.81M	246.26M	331.43M	158.63M	382.62M	589.88M	1.65B	349.98M
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	7.25M	7.47M	13.02M	2.38M	56.27M	70.79M	66.98M	69.47M	0	0
Current Ratio	1.52x	1.54x	1.56x	1.55x	1.52x	1.44x	1.40x	1.48x	1.39x	1.46x
Quick Ratio	1.11x	1.12x	1.15x	1.11x	1.10x	1.08x	1.03x	1.05x	1.00x	1.08x
Cash Conversion Cycle	47.45	51.85	57.48	57.28	56.22	50.57	52.48	63.04	73.38	76.42
Total Non-Current Liabilities+	2.77B	3.05B	3.51B	3.62B	3.28B	2.77B	2.87B	3.76B	2.66B	3.29B
Long-Term Debt	2.38B	2.7B	2.93B	3.24B	2.64B	2.1B	2.24B	3.18B	2.15B	2.77B
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	198.47M
Deferred Tax Liabilities	0	258.5M	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	390.39M	355.19M	572.97M	378.54M	636.12M	676.14M	624.16M	579.26M	507.42M	317.77M
Total Liabilities	8.83B	9.74B	11.46B	12.41B	11.53B	11.9B	14.19B	16.15B	15.85B	15.93B
Total Debt+	2.42B	2.79B	3.29B	3.49B	2.97B	2.26B	2.63B	3.77B	3.81B	3.39B
Net Debt	2.15B	2.26B	2.56B	2.98B	2.67B	1.88B	2.4B	3.6B	3.59B	3.2B
Debt / Equity	0.58x	0.62x	0.66x	0.65x	0.61x	0.44x	0.49x	0.67x	0.65x	0.58x
Debt / EBITDA	2.47x	2.74x	3.04x	2.61x	9.99x	2.08x	1.50x	1.67x	2.30x	3.64x
Net Debt / EBITDA	2.19x	2.22x	2.37x	2.23x	8.98x	1.74x	1.37x	1.59x	2.17x	3.44x
Interest Coverage	6.09x	5.70x	5.91x	5.34x	0.41x	6.52x	11.82x	11.14x	4.48x	2.85x
Total Equity+	4.19B	4.47B	5B	5.38B	4.87B	5.15B	5.34B	5.61B	5.88B	5.83B
Equity Growth %	0.01%	0.06%	0.12%	0.08%	-0.09%	0.06%	0.04%	0.05%	0.05%	-0.01%
Book Value per Share	43.84	48.52	55.70	60.79	58.23	65.48	72.78	85.73	103.05	108.40
Total Shareholders' Equity	4.14B	4.41B	4.95B	5.32B	4.81B	5.09B	5.28B	5.55B	5.81B	5.76B
Common Stock	125.42M	125.42M	125.42M	125.42M	125.42M	125.42M	125.42M	125.42M	57.69M	55.59M
Retained Earnings	4.67B	5.2B	5.6B	6.34B	6.13B	6.68B	7.79B	9.21B	5.79B	5.98B
Treasury Stock	-1.48B	-1.64B	-1.76B	-1.97B	-2.33B	-2.78B	-3.63B	-4.64B	-297.75M	-328.08M
Accumulated OCI	-284.71M	-383.85M	-125M	-299.45M	-262.21M	-104.89M	-191.66M	-365.26M	-298.04M	-509.27M
Minority Interest	52.37M	52.18M	48.69M	51.38M	54.47M	59.63M	58.55M	65M	71.84M	70.38M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	660.01M	359.67M	124.56M	272.69M	858M	1.36B	418.98M	-33.08M	705.45M	1.13B
Operating CF Margin %	0.03%	0.02%	0%	0.01%	0.03%	0.05%	0.01%	-0%	0.02%	0.04%
Operating CF Growth %	-0.02%	-0.46%	-0.65%	1.19%	2.15%	0.58%	-0.69%	-1.08%	22.33%	0.6%
Net Income	500.49M	524.79M	407.38M	721.57M	-200.17M	586.46M	1.11B	1.44B	909.36M	393.51M
Depreciation & Amortization	155.75M	159.19M	153.6M	186.38M	189.79M	189.06M	195.12M	187.38M	181.12M	162.99M
Stock-Based Compensation	47.27M	39.83M	39.12M	46.24M	41.07M	35.29M	36.12M	42.93M	41.57M	34.63M
Deferred Taxes	5.83M	28.74M	38.41M	1.24M	-50.29M	29.71M	24.75M	-13.05M	-93.98M	-99.87M
Other Non-Cash Items	1.85M	-3.9M	112.31M	30.96M	741.57M	7.48M	-7.91M	-1.2M	3.72M	10.88M
Working Capital Changes	-51.19M	-388.98M	-626.26M	-713.71M	136.02M	511.84M	-939.56M	-1.68B	-336.34M	628.27M
Change in Receivables	-68.99M	-600.92M	-1.08B	-1.01B	338.85M	-541.43M	-2.11B	-1.43B	189.43M	-1.01B
Change in Inventory	-42.79M	-403.98M	-379.83M	-618.88M	383.06M	244.32M	-960.61M	-1.17B	139.31M	421.06M
Change in Payables	33.4M	582.16M	816.6M	936.42M	-521.58M	760.88M	1.77B	945.82M	-457.38M	1.09B
Cash from Investing+	-664.03M	-241.45M	-188.76M	-462.96M	-173.58M	-138.79M	-60.12M	-57.71M	-72.32M	-94.44M
Capital Expenditures	-154.8M	-164.69M	-203.95M	-135.34M	-143.19M	-123.58M	-83.05M	-78.84M	-83.28M	-92.7M
CapEx % of Revenue	0.01%	0.01%	0.01%	0%	0%	0%	0%	0%	0%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	3.5M	-12M	18.82M	-28.08M	-17.3M	-15.21M	22.93M	21.13M	237K	22.46M
Cash from Financing+	-89.12M	162.2M	256.75M	-36.83M	-906.37M	-1.23B	-463.3M	109.78M	-666.22M	-956.83M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	8.11M	16.96M	-2.77M	7.64M	16.76M	-27.48M	71.72M	17.2M	73.58M	4.31M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	505.21M	194.98M	-79.39M	117.35M	707.19M	1.24B	335.93M	-111.91M	622.16M	1.04B
FCF Margin %	0.02%	0.01%	-0%	0%	0.02%	0.04%	0.01%	-0%	0.02%	0.04%
FCF Growth %	-0.08%	-0.61%	-1.41%	2.48%	5.03%	0.75%	-0.73%	-1.33%	6.56%	0.67%
FCF per Share	5.28	2.12	-0.88	1.33	8.46	15.71	4.58	-1.71	10.91	19.29
FCF Conversion (FCF/Net Income)	1.33x	0.69x	0.31x	0.38x	-4.20x	2.33x	0.38x	-0.02x	0.78x	2.88x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	11.92%	12.07%	8.49%	13.8%	-3.98%	11.67%	21.13%	26.06%	15.73%	6.7%
Return on Invested Capital (ROIC)	10.14%	9.85%	9.75%	10.82%	1.02%	9.21%	15.8%	18.3%	11.82%	6.23%
Gross Margin	13.04%	13.2%	12.52%	12.47%	11.41%	11.13%	12.19%	13.03%	12.53%	11.79%
Net Margin	2.14%	2.19%	1.5%	2.41%	-0.71%	2.04%	3.21%	3.84%	2.73%	1.4%
Debt / Equity	0.58x	0.62x	0.66x	0.65x	0.61x	0.44x	0.49x	0.67x	0.65x	0.58x
Interest Coverage	6.09x	5.70x	5.91x	5.34x	0.41x	6.52x	11.82x	11.14x	4.48x	2.85x
FCF Conversion	1.33x	0.69x	0.31x	0.38x	-4.20x	2.33x	0.38x	-0.02x	0.78x	2.88x
Revenue Growth	2.25%	2.33%	12.54%	10.68%	-2.56%	-0.84%	20.24%	7.68%	-10.82%	-15.66%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Global Components	14.41B	15.41B	18.33B	20.86B	7.67B	9.33B	12.28B	28.79B	25.42B	19.98B
Global Components Growth	-	6.96%	18.96%	13.78%	-63.22%	21.65%	31.60%	134.41%	-11.70%	-21.39%
Global ECS	8.88B	8.42B	8.48B	8.82B	8.67B	8.17B	8.12B	8.34B	7.69B	7.94B
Global ECS Growth	-	-5.18%	0.78%	3.98%	-1.74%	-5.72%	-0.63%	2.67%	-7.79%	3.29%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Other Foreign	-	-	-	-	-	-	11.6B	12.9B	12.74B	11.11B
Other Foreign Growth	-	-	-	-	-	-	-	11.18%	-1.27%	-12.74%
UNITED STATES	10.76B	10.5B	11.32B	12.16B	-	-	11.62B	13.17B	11.17B	9.77B
UNITED STATES Growth	-	-2.42%	7.82%	7.38%	-	-	-	13.36%	-15.18%	-12.55%
CHINA	-	-	-	-	-	-	-	6.34B	-	4.03B
CHINA Growth	-	-	-	-	-	-	-	-	-	-
GERMANY	-	-	-	-	-	-	4.01B	4.72B	4.34B	3.01B
GERMANY Growth	-	-	-	-	-	-	-	17.68%	-7.93%	-30.73%
China and Hong Kong	-	-	-	-	-	-	7.25B	-	4.86B	-
China and Hong Kong Growth	-	-	-	-	-	-	-	-	-	-
Americas	11.72B	11.44B	-	-	-	-	-	-	-	-
Americas Growth	-	-2.38%	-	-	-	-	-	-	-	-
EMEA	6.79B	6.77B	-	-	-	-	-	-	-	-
EMEA Growth	-	-0.24%	-	-	-	-	-	-	-	-
Asia Pacific	4.77B	5.61B	-	-	-	-	-	-	-	-
Asia Pacific Growth	-	17.56%	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Arrow Electronics, Inc. (ARW) has a price-to-earnings (P/E) ratio of 16.3x. This is roughly in line with market averages.

Growth & Financials

Arrow Electronics, Inc. (ARW) reported $29.39B in revenue for fiscal year 2024. This represents a 37% increase from $21.39B in 2011.

Arrow Electronics, Inc. (ARW) saw revenue decline by 15.7% over the past year.

Yes, Arrow Electronics, Inc. (ARW) is profitable, generating $475.9M in net income for fiscal year 2024 (1.4% net margin).

Dividend & Returns

Arrow Electronics, Inc. (ARW) has a return on equity (ROE) of 6.7%. This is below average, suggesting room for improvement.

Arrow Electronics, Inc. (ARW) generated $168.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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