Arlo Technologies (ARLO)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 510,886 | 524,407 | 516,743 | 504,372 | 491,176 | 474,610 | 472,764 | 476,667 | 490,414 | 514,748 | 497,740 | 477,332 | 435,137 | 407,112 | 406,199 | 374,260 | 357,154 | 364,731 | 360,611 | 377,577 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 17,942 | 6,421 | 7,055 | 7,336 | 6,588 | 7,478 | 8,522 | 24,409 | 26,300 | 26,516 | 14,596 | 15,821 | 16,832 | 44,258 | 49,468 |
| Fixed asset turnover | — | — | — | — | — | 26.45 | 73.63 | 67.56 | 66.85 | 78.13 | 66.56 | 56.01 | 17.83 | 15.48 | 15.32 | 25.64 | 22.57 | 21.67 | 8.15 | 7.63 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $510,886K ÷ $—K
= —
The fixed asset turnover ratio is a key financial metric used to evaluate how efficiently a company utilizes its fixed assets to generate sales. In the case of Arlo Technologies, the fixed asset turnover has shown significant fluctuations over the analyzed periods.
From March 31, 2020, to September 30, 2021, the ratio gradually increased from 7.63 to 15.48, indicating that the company was effectively generating sales relative to its investment in fixed assets. This trend suggests improving efficiency in asset utilization during this period.
However, from March 31, 2022, to June 30, 2023, there was a notable surge in the fixed asset turnover ratio, reaching a peak of 78.13 on September 30, 2022. This sharp increase may indicate a significant improvement in the efficiency of the company's fixed asset management or a temporary spike in sales relative to fixed asset investment.
Subsequently, the ratio declined to 26.45 on September 30, 2023, suggesting a decrease in the efficiency of fixed asset utilization. The inability to sustain the high turnover ratio seen in the previous quarters might imply challenges in maintaining sales growth in proportion to the investment in fixed assets.
The ratio appears to have not been reported for the periods beyond September 30, 2023. The lack of data for the subsequent quarters precludes a comprehensive analysis of the trend in fixed asset turnover for Arlo Technologies.
Overall, analyzing the fixed asset turnover ratio for Arlo Technologies reveals periods of both strong and weak efficiency in converting fixed assets into sales. It is essential for the company to maintain a balance in managing fixed assets to ensure sustainable and optimal utilization for revenue generation.
Peer comparison
Dec 31, 2024