Arlo Technologies (ARLO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 446,817 | 482,197 | 434,616 | 403,269 | 440,943 |
| Inventory | US$ in thousands | 38,408 | 46,554 | 38,390 | 64,705 | 68,624 |
| Inventory turnover | 11.63 | 10.36 | 11.32 | 6.23 | 6.43 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $446,817K ÷ $38,408K
= 11.63
Inventory turnover is a key financial ratio used to evaluate how efficiently a company manages its inventory. In the case of Arlo Technologies Inc, the trend in inventory turnover over the past five years shows fluctuations.
The inventory turnover ratios for Arlo Technologies Inc were 8.43 in 2023, 7.61 in 2022, 8.52 in 2021, 4.66 in 2020, and 4.87 in 2019. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
From the data provided, we can see that Arlo Technologies Inc has shown an improvement in managing its inventory from 2019 to 2023, with the ratio peaking in 2021 at 8.52. This indicates that the company's inventory is being sold more frequently in recent years compared to the previous years, reflecting efficient inventory management practices.
However, it is important to note that inventory turnover ratios should be analyzed in conjunction with industry benchmarks and other financial metrics to gain a more comprehensive understanding of the company's overall performance and efficiency in managing its inventory.
Peer comparison
Dec 31, 2023