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ARW, Arrow Electronics Inc.

Trading Companies & Distributors capital-intensive

Arrow Electronics Inc. distributes electronic components to OEMs and EMS providers through its global components segment and provides enterprise computing solutions to VARs and MSPs through its global ECS segment.

Has one of the world's broadest portfolios of product offerings available from leading electronic components and enterprise computing solutions suppliers.

Latest annual: FY2025 10-K

ARW · Arrow Electronics Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$30.9B

+10.5% YoY · 1% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $33.5B 5-yr avg $32.7B

Gross margin 11% 5-yr avg 12%

Operating margin 3.1% 5-yr avg 4.0%

ROIC 9% 5-yr avg 12%

Owner-earnings margin 1% 5-yr avg 1%

Free cash flow margin 1% 5-yr avg 1%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 12% and operating margin about 3.6% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. On a spread this thin the operating result swings hard on small moves in cost or volume — it has ranged from 0.4% to 5.6% over the years, so the cost line is where the needle moves. Inventory runs near 12% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 10%). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

66% of revenue comes from outside the United States.

Revenue by geography, FY2025

Other41%$12.7B
United States34%$10.6B
China and Hong Kong14%$4.4B
Germany10%$3.2B

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMApr 2026
											Income statement
$23.5B	$26.6B	$29.7B	$28.9B	$28.7B	$34.5B	$37.1B	$33.1B	$27.9B	$30.9B	$33.5B	RevenueRevenue
13%	13%	12%	11%	11%	12%	13%	13%	12%	11%	11%	Gross marginGross mgn
9%	8%	8%	8%	7%	7%	7%	7%	8%	8%	7%	SG&A / revenueSG&A/rev
$877M	$946M	$1.1B	$108M	$895M	$1.6B	$2.1B	$1.5B	$769M	$822M	$1.0B	Operating incomeOp. inc.
3.7%	3.6%	3.9%	0.4%	3.1%	4.5%	5.6%	4.4%	2.8%	2.7%	3.1%	Operating marginOp. mgn
$523M	$402M	$716M	($204M)	$584M	$1.1B	$1.4B	$904M	$392M	$571M	$727M	Net incomeNet inc.
27%	42%	21%	—	23%	23%	24%	22%	20%	21%	21%	Effective tax rateTax rate
											Cash flow & returns
$360M	$125M	$273M	$858M	$1.4B	$419M	($33M)	$705M	$1.1B	$64M	$412M	Operating cash flowOp. cash
$159M	$154M	$186M	$190M	$189M	$195M	$187M	$181M	$163M	$138M	$138M	DepreciationDeprec.
($362M)	($470M)	($676M)	$831M	$551M	($920M)	($1.7B)	($421M)	$541M	($673M)	($471M)	Working capital & otherWC & other
$165M	$204M	$135M	$143M	$124M	$83M	$79M	$83M	$93M	$101M	$108M	CapexCapex
0.7%	0.8%	0.5%	0.5%	0.4%	0.2%	0.2%	0.3%	0.3%	0.3%	0.3%	Capex / revenueCapex/rev
$195M	($29M)	$137M	$715M	$1.2B	$336M	($112M)	$622M	$1.0B	($37M)	$304M	Owner earningsOwner earn.
0.8%	−0.1%	0.5%	2.5%	4.3%	1.0%	−0.3%	1.9%	3.7%	−0.1%	0.9%	Owner earnings marginOE mgn
$195M	($79M)	$137M	$715M	$1.2B	$336M	($112M)	$622M	$1.0B	($37M)	$304M	Free cash flowFCF
0.8%	−0.3%	0.5%	2.5%	4.3%	1.0%	−0.3%	1.9%	3.7%	−0.1%	0.9%	Free cash flow marginFCF mgn
$65M	$4M	$332M	$0	$0	—	$0	$0	$35M	$0	$0	AcquisitionsAcquis.
$216M	$174M	$243M	$404M	$484M	$912M	$1.0B	$770M	$265M	$162M	—	BuybacksBuybacks
10%	7%	11%	1%	10%	16%	17%	12%	7%	7%	9%	ROICROIC
12%	8%	13%	-4%	11%	21%	26%	16%	7%	9%	11%	Return on equityROE
12%	8%	13%	−4%	11%	21%	26%	16%	7%	9%	11%	Retained to equityRetained/eq
											Balance sheet
$534M	$730M	$509M	$300M	$374M	$222M	$177M	$218M	$189M	$306M	$287M	Cash & investmentsCash+inv
$6.7B	$8.1B	$8.9B	$8.5B	$9.2B	$11.1B	$12.3B	$12.2B	$13.0B	$19.7B	$26.0B	ReceivablesReceiv.
$2.9B	$3.3B	$3.9B	$3.5B	$3.3B	$4.2B	$5.3B	$5.2B	$4.7B	$5.1B	$5.7B	InventoryInvent.
$5.8B	$6.8B	$7.6B	$7.0B	$7.9B	$9.6B	$10.5B	$10.1B	$11.0B	$17.4B	$24.7B	Accounts payablePayables
$3.8B	$4.7B	$5.2B	$4.9B	$4.6B	$5.7B	$7.2B	$7.4B	$6.7B	$7.4B	$6.9B	Operating working capitalOper. WC
$10.3B	$12.4B	$13.6B	$12.5B	$13.2B	$15.9B	$18.3B	$18.3B	$18.4B	$25.7B	$32.6B	Current assetsCur. assets
$6.7B	$8.0B	$8.8B	$8.3B	$9.1B	$11.3B	$12.4B	$13.2B	$12.6B	$18.8B	$26.3B	Current liabilitiesCur. liab.
1.5×	1.6×	1.5×	1.5×	1.4×	1.4×	1.5×	1.4×	1.5×	1.4×	1.2×	Current ratioCurr. ratio
$2.4B	$2.5B	$2.6B	$2.1B	$2.1B	$2.1B	$2.0B	$2.1B	$2.1B	$2.1B	$2.1B	GoodwillGoodwill
$14.2B	$16.5B	$17.8B	$16.4B	$17.1B	$19.5B	$21.8B	$21.7B	$21.8B	$29.1B	$36.0B	Total assetsAssets
$2.8B	$3.3B	$3.5B	$3.0B	$2.3B	$2.6B	$3.8B	$3.8B	$3.1B	$3.1B	$2.5B	Total debtDebt
$2.3B	$2.6B	$3.0B	$2.7B	$1.9B	$2.4B	$3.6B	$3.6B	$2.9B	$2.8B	$2.2B	Net debt / (cash)Net debt
$4.4B	$4.9B	$5.3B	$4.8B	$5.1B	$5.3B	$5.5B	$5.8B	$5.8B	$6.6B	$6.7B	Shareholders’ equityEquity
0.2%	0.1%	0.2%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	Stock comp / revenueSBC/rev
											Per share
92.0M	89.8M	88.4M	83.6M	78.6M	73.4M	65.5M	57.0M	53.8M	52.3M	51.7M	Shares out (diluted)Shares
$255.21	$295.82	$335.54	$346.03	$364.64	$469.81	$567.19	$580.47	$519.05	$590.43	$648.12	Revenue / shareRev/sh
$5.68	$4.48	$8.10	$-2.44	$7.43	$15.10	$21.80	$15.84	$7.29	$10.93	$14.05	EPS (diluted)EPS
$2.12	$-0.32	$1.55	$8.55	$15.72	$4.58	$-1.71	$10.91	$19.29	$-0.71	$5.87	Owner earnings / shareOE/sh
$2.12	$-0.88	$1.55	$8.55	$15.72	$4.58	$-1.71	$10.91	$19.29	$-0.71	$5.87	Free cash flow / shareFCF/sh
$1.79	$2.27	$1.53	$1.71	$1.57	$1.13	$1.20	$1.46	$1.72	$1.94	$2.10	Cap. spending / shareCapex/sh
$47.95	$55.14	$60.21	$57.58	$64.72	$71.98	$84.74	$101.79	$107.09	$126.01	$130.38	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+9.8%/yr	+10.1%/yr
EPS	+7.5%/yr	+8.0%/yr
Capital spending / share	+0.9%/yr	+4.3%/yr
Book value / share	+11.3%/yr	+14.3%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

52Mpeak FY2016

ROIC

7%low FY2019

Gross margin

11%low FY2020

Net debt ÷ owner earnings

2.8×peak FY2018

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($37M)owner earningsvs.$571Mnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $571M of profit but ($37M) of owner earnings: $608M less than the profit line, taken out by capital spending and the timing of cash.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$571M	$392M	$904M	$1.4B	$1.1B
Depreciation & amortizationnon-cash charge added back	+$138M	+$163M	+$181M	+$187M	+$195M
Stock-based compensationreal costnon-cash, but a real cost	+$28M	+$35M	+$42M	+$43M	+$36M
Working capital & othertiming of cash in and out, other non-cash items	−$673M	+$541M	−$421M	−$1.7B	−$920M
Cash from operations	$64M	$1.1B	$705M	($33M)	$419M
Capital expenditurecash put back in to keep running and to grow	−$101M	−$93M	−$83M	−$79M	−$83M
Owner earnings	($37M)	$1.0B	$622M	($112M)	$336M
Owner-earnings marginowner earnings ÷ revenue	0%	4%	2%	0%	1%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $28M), owner earnings is nearer ($65M).

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

Interest expense not tagged in the data

What this means
No usable interest-expense line was tagged in the filing data, but the balance sheet carries real net debt — so the interest burden here is unknown, not absent. Read the debt on the net-debt check below.
How heavy is the debt, net of cash? $2.8B · 3.4× operating profit

Meaningful net debt

Cash $306M − debt $3.1B

What this means
Netting $306M of cash and short-term investments against $3.1B of debt leaves $2.8B owed, about 3.4× a year's operating profit (3.8× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 70d

Long (60+ days)

DSO 234 + DIO 68 − DPO 232 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 10%

Solid through the cycle

10-yr median, range 1%–17%; 7% latest = NOPAT $653M ÷ invested capital $9.4B

Industry peers: median 15%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 7% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 1%

Thin through the cycle

10-yr median margin, range -0%–4%; latest ($37M) = operating cash $64M − maintenance capex $101M

Industry peers: median 5%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -0% of revenue this year, a 1% median across 10 years. Treating stock comp as the real expense it is (less $28M of SBC) leaves ($65M).
Are earnings backed by cash? 0.11×

Thinly cash-backed

Cash from ops $64M ÷ net income $571M

In the filing’s words And the filing leans heavily on adjusted, non-GAAP earnings — steering you off the GAAP figure just where the cash is not backing it. Read the reconciliation in the notes before taking the adjusted number.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

No surplus to allocate

What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
Investing or harvesting? 0.74×

Harvesting

Capex $101M ÷ depreciation $138M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $30.9B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.36×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $3.1B vs $6.8B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (10-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Near

Earnings +33% over the record · +14%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $12.17/share (latest year $11.17), the averaged base the calculator's gate runs on, and book value is $128.77/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 10

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 2 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 4% → 3% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
Through the cycle the operating margin held roughly steady — about 4% early, 3% lately, median 4%.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +22%/yr

What this means
Owner earnings grew about 22% a year over the record.
Worst year 2019 · 0.4% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −6.1%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“If the company fails to successfully invest in and implement digital, AI, and other technological developments, or its suppliers are not able to continue to offer competitive components and electronic computing solutions, it could materially adversely impact results.”

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 4, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$32.6B

Cash & short-term investments$287M
Receivables$26.0B
Inventory$5.7B
Other current assets$585M

Current liabilities$26.3B

Debt due within a year$113M
Accounts payable$24.7B
Other current liabilities$1.4B

Current ratio1.24×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.02×stricter: inventory excluded

Cash ratio0.01×strictest: cash alone against what's due

Working capital$6.3Bthe cushion left after near-term bills

Debt due this year vs. cash$113M due · $287M cash covered by cash on hand, no refinancing forced · both figures from the Apr 4, 2026 balance sheet

Revenue, latest quarter vs. a year ago+39.0%the freshest read on whether the business is still growing

Current ratio, recent quarters1.5× → 1.2×

Deeper floors

Tangible book value$4.6Bequity stripped of goodwill & intangibles

Debt incl. operating leases$2.7B$263M of it operating leases

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $5.3B of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$1.2B · 23%
Buybacks$4.7B · 89%

Returned to owners$4.7B
114% of the owner earnings the business produced over the span, $0 as dividends and $4.7B as buybacks.
Source of funding−$629M
Reinvestment and shareholder returns ran $629M beyond the operating cash the business generated, so the gap was financed off the balance sheet: cash and short-term investments drew down $248M.
Average price paid for buybacks—
Buybacks ran $4.7B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−43.8%
The diluted count fell from 92M to 52M, so the buybacks outran the stock issued to staff.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained25%
Of the earnings it kept rather than paid out ($1.7B over the span), annual owner earnings (first three years vs last three) grew $440M, so each retained $1 added about 0.25 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	William F. Austen	$12.9M	$24.8M	$336M
2022	William F. Austen	$7.5M	$8.0M	($112M)
2022	William F. Austen	$11.6M	$6.5M	($112M)
2023	William F. Austen	$8.9M	$8.8M	$622M
2024	William F. Austen	$8.2M	$6.2M	$1.0B
2025	William F. Austen	$4.3M	$3.8M	($37M)
2025	William F. Austen	$9.3M	−$4.4M	($37M)

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership0.8%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$28M
The slice of the business handed to employees in shares this year, 0% of revenue, equal to 3% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Arrow Electronics Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

3 of the 6 tests turned up something to look into; the other 3 came back clean.

Look hereDid reported profit become cash?0.82×
Across the record the business reported $6.4B of net income but generated $5.3B of operating cash, a 0.82-to-one conversion. Profit that does not turn into cash over many years is the classic mark of earnings that are softer than they look. Ask where the gap sits, receivables, inventory, or costs being capitalized rather than expensed.
Look hereDid receivables and inventory outpace sales?41% → 95% of sales
Receivables and inventory grew from $9.6B to $31.7B while revenue grew 43%: working capital is climbing faster than sales (41% of revenue then, 95% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
Look hereAre "one-time" charges a yearly habit?5 of 10 years
Management took an impairment or write-down in 5 of the last 10 years, $740M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Income taxes, Credit & receivables, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Trading Companies & Distributors

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
SNXTD SYNNEX Corporation	$62.5B	6%	2.4%	8%	2%
ARWArrow Electronics Inc.	$30.9B	12%	3.6%	10%	1%
FERGFerguson Enterprises	$30.8B	31%	8.9%	21%	5%
GPCGenuine Parts Company	$24.3B	35%	7.1%	15%	5%
WCCWESCO Intl	$23.5B	20%	4.5%	8%	2%
AVTAvnet Inc.	$22.2B	12%	2.3%	7%	1%
GWWW.W. Grainger Inc.	$17.9B	39%	11.9%	29%	8%
TELTE Connectivity plc	$17.3B	33%	16.3%	15%	13%
Group median	—	25%	5.8%	12%	3%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Arrow Electronics Inc. has delivered.

Today’s price $

Through the cycle, Arrow Electronics Inc. earns about $278M on its 0.9% median owner-earnings margin. This year’s −0.1% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($278M) Net of stock comp (−$19M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+45%/yr

Owner-earnings growth · ’16→’25+27%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $304M on 51M shares outstanding, per the 10-Q cover, as of 2026-04-30; net debt $2.2B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh ARW against another business →

Cite: Owner Scorecard, "Arrow Electronics Inc. (ARW), the owner's record," https://ownerscorecard.com/c/ARW, data as of 2026-07-09.

Manual order: ← ARVN its page in the Manual ARWR →

Industry order: ← AL the Trading Companies & Distributors chapter AVT →