Is the business good?
How good a business is ARW?
Arrow Electronics, Inc. earns 9.1% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
9.1%
Return on invested capital · cost of capital 9.0% · 0.08 points above what the capital costs: growth creates value
- Operating margin
- 3.1%
Operating margin · Electronics & Computer Distribution median 3.0% · 12 months to Q1 2026
- Cash conversion
- 0.42×
Cash conversion · 2.55× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 3.1% |
| FY2021 | 4.5% |
| FY2022 | 5.6% |
| FY2023 | 4.4% |
| FY2024 | 2.8% |
| FY2025 | 2.7% |
Details›
- Gross margin12 months to Q1 2026
- 11%
- Operating margin12 months to Q1 2026
- 3.1%
- Net margin12 months to Q1 2026
- 2.2%
- Free cash flow margin
- 0.91%
- Revenue, trailing twelve months
- $33.5B
- Free cash flow, trailing twelve months
- $304M
- Net income, trailing twelve months
- $727M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Electronics & Computer Distribution
Ranks #2 of 6 by Smart Score