Arlo Technologies (ARLO)
Payables 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 |
| Payables | US$ in thousands | 55,201 | 52,132 | 84,098 | 62,171 | 111,650 |
| Payables turnover | 8.09 | 9.25 | 5.17 | 6.49 | 3.95 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $446,817K ÷ $55,201K
= 8.09
To analyze the payables turnover of Arlo Technologies Inc over the past five years, we can observe the trend and assess the efficiency of the company's management of its accounts payable.
The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period. A higher payables turnover ratio indicates that the company is managing its payable effectively by paying suppliers promptly.
In this case, we see a fluctuating trend in Arlo Technologies Inc's payables turnover ratio over the last five years. The ratio was 5.86 in 2023, 6.80 in 2022, 3.89 in 2021, 4.85 in 2020, and 2.99 in 2019.
The decreasing trend from 2019 to 2021 followed by an increase in 2022 and 2023 could imply that the company may have improved its accounts payable management efficiency recently. However, further investigation into the reasons behind these fluctuations would be necessary to gain a deeper understanding of the company's payment policies and relationships with suppliers.
Overall, while the payables turnover ratio provides insights into a company's liquidity and relationships with suppliers, it should be considered alongside other financial metrics and qualitative factors for a comprehensive analysis of Arlo Technologies Inc's financial performance.
Peer comparison
Dec 31, 2023