Arrow's ESG and Financial Overview
Annual ROWC and ROIC reconciliation
($ in thousands)
Numerator:
2023
2022
2021
2020
2019
Consolidated operating income, as reported
Equity in earnings of affiliated companies (1)
Less: Noncontrolling interests (1)
Consolidated operating income, as adjusted
Less: Tax effect (2)
$
1,471,164 $ 2,068,494 $
6,407
7,664
1,556,822 $
3,508
894,511 $
(531)
5,858
1,471,713 $
323,586
After-tax consolidated operating income, as adjusted
Non-GAAP consolidated operating income
Equity in earnings of affiliated companies
Less: Noncontrolling interests
(1)
Non-GAAP consolidated operating income, as adjusted
$
1,148,127 $
8,274
2,067,884 $
494,690
1,573,194 $
2,271
2,026
1,558,059 $
354,044
1,204,015 $
891,954 $
203,511
688,443 $
107,696
(2,765)
3,919
101,012
(82,903)
183,915
$
1,586,322 $
2,116,927 $
(1)
6,407
7,664
6,397
Less: Tax Effect (3)
After-Tax non-GAAP consolidated operating income, as adjusted
$
1,586,332 $
350,378
1,235,954 $
8,799
2,115,792 $
506,497
1,609,295 $
1,609,145 $
3,508
2,271
1,610,382 $
366,746
1,243,636 $
936,915
(531)
2,026
934,358 $
214,779
719,579 $
1,056,785
(2,765)
3,919
1,050,101
256,112
793,989
Denominator:
(4)
Average short-term borrowings, including current portion of long-term debt (4)
Average long-term debt
$
892,986 $
504,094 $
3,068,681
2,852,348
Average total equity (4
Less: Average cash and cash equivalents (4)
Invested Capital
Return on invested capital
Return on invested capital (non-GAAP)
($ in thousands)
Numerator:
Consolidated operating income, as reported
Non-GAAP consolidated operating income
(4)
5,659,361
5,416,410
322,696 $
2,034,077
5,233,267
255,538 $
2,231,394
4,850,535
234,840
240,296
256,702
$
9,386,188 $
8,532,556 $
7,333,338 $
261,513
7,075,954 $
270,475
3,110,940
5,062,226
338,714
8,104,927
12.23%
13.17%
18.44%
18.86%
16.42%
16.96%
9.73%
10.17%
2023
2022
2021
2020
2019
Denominator:
Accounts receivable, net
(5)
Inventories (5)
Less: Accounts payable (5)
Working Capital
Return on working capital
Return on working capital (non-GAAP)
MW
2.27%
9.80%
(1) Operating income, as reported, and non-
GAAP operating income is adjusted for
noncontrolling interest and equity in losses of
affiliated companies to include the pro-rata
ownership of non-wholly owned subsidiaries.
(2) The tax effect is calculated by applying the
effective tax rate for the years ended to
consolidated operating income, as adjusted.
The tax rate is adjusted to exclude the
impacts of interest expense, gain on
investments, net, and employee benefit plan
expense, net.
(3) The tax effect is calculated by applying the
non-GAAP effective tax rate for the years
ended to non-GAAP consolidated operating
income, as adjusted. The tax rate is adjusted
to exclude the impacts of interest expense
and employee benefit plan expense, net.
(4) The year ended average is based on the
addition of the account balance at the end of
the five most recently-ended quarters and
dividing by five.
(5) This amount is an average balance based
on the addition of the account balance at the
end of the five most recently-ended quarters
and dividing by five.
$
$
+A
1,471,164 $
1,586,322 $
2,068,494 $
2,116,927 $
1,556,822 $
1,609,145 $
894,511 $
936,915 $
107,696
1,056,785
11,377,422 $
5,458,019
9,515,699
11,227,736 $
4,827,278
$ 7,319,742 $
9,578,175
6,476,839 $
9,401,688 $
3,647,146
8,046,357
5,002,477 $
8,283,552 $
3,351,088
7,092,575
8,229,824
3,638,159
6,627,807
4,542,065 $
5,240,176
20.10%
31.94%
31.12%
19.69%
2.06%
21.67%
32.68%
32.17%
20.63%
20.17%
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