Arlo Technologies (ARLO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 323,382 | 323,613 | 354,379 | 327,102 | 301,765 |
| Inventory | US$ in thousands | 40,633 | 38,408 | 46,554 | 38,390 | 64,705 |
| Inventory turnover | 7.96 | 8.43 | 7.61 | 8.52 | 4.66 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $323,382K ÷ $40,633K
= 7.96
Arlo Technologies' inventory turnover ratio has shown an upward trend over the past five years, increasing from 4.66 in December 31, 2020 to 8.52 in December 31, 2021, and maintaining relatively high levels between 7.61 and 8.43 in the subsequent years. This indicates that the company has been efficiently managing its inventory levels by selling and replenishing its stock more frequently. A higher inventory turnover ratio is generally seen as a positive sign, as it suggests that the company is selling its products quickly, which can lead to higher liquidity and lower holding costs. Overall, Arlo Technologies' inventory turnover performance reflects effective inventory management practices and operational efficiency.
Peer comparison
Dec 31, 2024