Arlo Technologies (ARLO)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.81 | 7.90 | 10.99 | 11.05 | 10.36 | 6.72 | 12.19 | 12.75 | 11.32 | 10.41 | 9.62 | 6.98 | 6.23 | 6.19 | 6.61 | 7.40 | 6.43 | 2.43 | 1.87 | 1.26 | |
| DOH | days | 33.76 | 46.20 | 33.22 | 33.04 | 35.24 | 54.35 | 29.95 | 28.62 | 32.24 | 35.07 | 37.93 | 52.28 | 58.56 | 58.99 | 55.25 | 49.33 | 56.80 | 150.32 | 194.69 | 290.03 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.81
= 33.76
Days of Inventory on Hand (DOH) is a crucial ratio that measures the number of days it takes for a company to sell its average inventory. A lower DOH indicates that a company is selling its inventory more quickly, which can be a positive indicator of efficient inventory management.
Upon analysis of Arlo Technologies Inc's historical DOH data, we observe some fluctuations over the past eight quarters. In Q3 2022, the DOH was relatively high at 70.54 days, which may indicate slower inventory turnover during that period. However, in Q2 2022 and Q1 2022, the DOH decreased significantly to 38.23 days and 37.39 days, respectively, suggesting improved inventory management efficiency.
Looking at more recent data, there has been some variability in the DOH figures. In Q4 2023, the DOH decreased to 43.32 days compared to the previous quarter, indicating that the company was able to sell its inventory at a faster rate. This improvement in inventory turnover could be a positive sign for Arlo Technologies Inc's operations and financial performance.
Overall, it is important for Arlo Technologies Inc to closely monitor its inventory management practices to ensure optimal levels of inventory that align with demand in the market. By maintaining a balance between inventory levels and sales, the company can enhance its operational efficiency and financial health.
Peer comparison
Dec 31, 2023