Arlo Technologies (ARLO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 11.63 | 10.36 | 11.32 | 6.23 | 6.43 | |
| DOH | days | 31.38 | 35.24 | 32.24 | 58.56 | 56.80 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.63
= 31.38
The days of inventory on hand (DOH) for Arlo Technologies Inc have shown some fluctuation over the past five years. In 2023, the company improved its inventory management significantly, with DOH decreasing to 43.32 days compared to 47.95 days in 2022. This suggests that in 2023, Arlo was able to turn over its inventory more efficiently, indicating better inventory control and potentially lower carrying costs.
Comparing to previous years, the trend in DOH has been somewhat mixed. In 2021, the company had a DOH of 42.84 days, slightly lower than 2023. However, in 2020 and 2019, the DOH was significantly higher at 78.26 days and 74.95 days, respectively. These higher numbers suggest that Arlo took longer to sell its inventory in those years, which could indicate issues with inventory management, overstocking, or slow sales.
Overall, the recent improvement in DOH for Arlo Technologies Inc is a positive sign of more efficient inventory management. However, it is essential for the company to continue monitoring and optimizing its inventory turnover to maintain healthy levels of working capital and profitability.
Peer comparison
Dec 31, 2023