Arlo Technologies (ARLO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.96 | 6.43 | 7.34 | 7.27 | 8.43 | 6.03 | 8.29 | 8.49 | 7.61 | 5.17 | 9.55 | 9.76 | 8.52 | 7.70 | 7.14 | 5.31 | 4.66 | 4.64 | 4.97 | 5.57 | |
| DOH | days | 45.86 | 56.73 | 49.72 | 50.23 | 43.32 | 60.56 | 44.02 | 42.99 | 47.95 | 70.54 | 38.23 | 37.39 | 42.84 | 47.40 | 51.10 | 68.78 | 78.26 | 78.70 | 73.47 | 65.56 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.96
= 45.86
Days of Inventory on Hand (DOH) is a financial metric that helps in evaluating how efficiently a company manages its inventory levels. A lower DOH value indicates that the company is selling its inventory quickly and efficiently, while a higher DOH value suggests that the company may be holding onto excess inventory.
Analyzing the DOH trend of Arlo Technologies from March 31, 2020, to December 31, 2024, we observe fluctuations in the metric over the periods:
- The DOH increased from 65.56 days on March 31, 2020, to 78.70 days on September 30, 2020, indicating a possible increase in inventory levels.
- There was a slight decrease in DOH to 68.78 days on March 31, 2021, before a significant drop to 51.10 days on June 30, 2021, and a further decrease to 47.40 days on September 30, 2021. These declines suggest improved inventory turnover efficiency.
- The trend continued with a low of 37.39 days on March 31, 2022, but then increased to 70.54 days on September 30, 2022, indicating a potential buildup of inventory.
- The DOH decreased to 42.99 days on March 31, 2023, but then rose again to 60.56 days on September 30, 2023, showing fluctuations in inventory management.
- There was a decrease to 45.86 days on December 31, 2024, from the peak of 56.73 days on September 30, 2024.
Overall, the DOH of Arlo Technologies has shown varying levels over the analyzed periods. The company seems to have experienced fluctuations in managing its inventory efficiently, with some periods of improvement in inventory turnover efficiency and other periods of potential inventory accumulation. Monitoring the DOH can help evaluate the effectiveness of Arlo Technologies in managing its inventory levels and making informed decisions regarding inventory management strategies.
Peer comparison
Dec 31, 2024