Arlo Technologies (ARLO)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 415,208 | 422,605 | 433,271 | 441,019 | 482,197 | 491,905 | 477,756 | 472,398 | 434,616 | 413,896 | 415,276 | 390,789 | 403,281 | 427,154 | 434,802 | 451,526 | 440,943 | 179,970 | 182,265 | 165,146 |
| Inventory | US$ in thousands | 38,408 | 53,496 | 39,429 | 39,922 | 46,554 | 73,243 | 39,208 | 37,038 | 38,390 | 39,769 | 43,155 | 55,972 | 64,705 | 69,038 | 65,814 | 61,027 | 68,624 | 74,117 | 97,222 | 131,227 |
| 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 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $415,208K ÷ $38,408K
= 10.81
To analyze the inventory turnover of Arlo Technologies Inc based on the provided data, we observe fluctuations in the ratio over the eight quarters. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring how many times its inventory is sold and replaced over a period.
Looking at the trend, we note that the inventory turnover ratio has varied significantly over the quarters. In Q4 2023, the ratio stood at 8.43, which represents a moderate increase compared to Q3 2023 where it was 6.03. This suggests that the company improved its ability to sell and replace inventory during Q4 2023.
Comparing Q4 2023 to the same quarter in the previous year, the inventory turnover ratio was 7.61 in Q4 2022. This shows a notable improvement in efficiency in managing inventory from the previous year.
Furthermore, the trend over the past two years reveals some fluctuations, with the highest ratio of 9.76 recorded in Q1 2022. This indicates that Arlo Technologies Inc was most efficient in managing its inventory during that quarter.
Overall, the varying inventory turnover ratios suggest fluctuations in sales and inventory management effectiveness. Further analysis and comparison to industry benchmarks would provide additional insights into the company's inventory management performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023