Arlo Technologies (ARLO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 497,111 | 493,340 | 435,648 | 358,248 | 427,625 |
| Property, plant and equipment | US$ in thousands | 4,761 | 7,336 | 9,595 | 15,821 | 21,352 |
| Fixed asset turnover | 104.41 | 67.25 | 45.40 | 22.64 | 20.03 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $497,111K ÷ $4,761K
= 104.41
Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate revenue. Arlo Technologies Inc's fixed asset turnover has shown a significant upward trend over the past five years, reaching 103.17 in 2023 from 17.33 in 2019. This indicates that the company has been able to generate more revenue per dollar of fixed assets invested over time. The increasing trend suggests improved efficiency in utilizing fixed assets to generate sales, which may result from better asset management, increased production capacity, or effective utilization of existing assets. Overall, the rising fixed asset turnover ratio reflects positively on the company's operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023