Arlo Technologies (ARLO)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 323,382 | 334,408 | 332,021 | 324,646 | 323,613 | 322,426 | 326,969 | 338,990 | 354,379 | 378,967 | 374,366 | 361,529 | 327,102 | 306,255 | 308,276 | 297,017 | 301,765 | 320,174 | 326,960 | 339,765 |
| Inventory | US$ in thousands | 40,633 | 51,975 | 45,227 | 44,676 | 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 |
| Inventory turnover | 7.96 | 6.43 | 7.34 | 7.27 | 8.43 | 6.03 | 8.29 | 8.49 | 7.61 | 5.17 | 9.55 | 9.76 | 8.52 | 7.70 | 7.14 | 5.31 | 4.66 | 4.64 | 4.97 | 5.57 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $323,382K ÷ $40,633K
= 7.96
Inventory turnover is a crucial financial ratio that measures the efficiency of a company in managing its inventory. It indicates how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio generally implies that the company is selling its products quickly and efficiently.
For Arlo Technologies, the inventory turnover has shown some fluctuations over the given period. Starting from March 31, 2020, with a turnover of 5.57, the ratio varied, reaching a peak of 9.76 on March 31, 2022, before mildly decreasing to 6.43 on September 30, 2024. This suggests an improvement in the company's inventory management efficiency, as a higher turnover indicates faster sales of inventory.
It is notable that there were some significant increases in inventory turnover from June 30, 2021, to December 31, 2022, indicating a more efficient utilization of inventory during that period. However, the ratio dipped in subsequent periods, showing a slight decline in the speed of inventory turnover.
Overall, Arlo Technologies has demonstrated a generally positive trend in inventory turnover over the analyzed period, albeit with some fluctuations. It is essential for the company to maintain an optimal balance between holding enough inventory to meet customer demand and avoiding excessive stockpiling that may lead to obsolescence or increased holding costs.
Peer comparison
Dec 31, 2024
Dec 31, 2024