Arlo Technologies (ARLO)
Payables 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 |
| Payables | US$ in thousands | 55,201 | 82,479 | 61,221 | 46,031 | 52,132 | 107,103 | 77,423 | 68,266 | 84,098 | 61,660 | 42,884 | 27,054 | 62,171 | 74,727 | 52,902 | 39,103 | 111,650 | 57,772 | 22,312 | 55,016 |
| Payables turnover | 7.52 | 5.12 | 7.08 | 9.58 | 9.25 | 4.59 | 6.17 | 6.92 | 5.17 | 6.71 | 9.68 | 14.44 | 6.49 | 5.72 | 8.22 | 11.55 | 3.95 | 3.12 | 8.17 | 3.00 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $415,208K ÷ $55,201K
= 7.52
The payables turnover ratio measures how efficiently a company manages its accounts payable by assessing how many times a company pays off its average accounts payable balance in a given period.
In the case of Arlo Technologies Inc, the payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 3.54 in Q3 2022 to a high of 7.36 in Q1 2023. A higher payables turnover ratio generally indicates that the company is managing its accounts payable more efficiently, paying off its suppliers more frequently within a particular period. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers.
Analyzing the data, we can observe that there was a significant increase in the payables turnover ratio in Q1 2023 compared to the previous quarters, indicating that Arlo Technologies Inc was more aggressive in paying off its accounts payable during that period. However, this trend was reversed in Q2 2023 when the ratio decreased to 5.34 before increasing again in Q4 2023 to 5.86.
Overall, while the payables turnover ratio for Arlo Technologies Inc has shown fluctuations over the past eight quarters, the company appears to be effectively managing its accounts payable, with the ratio consistently above 3.5. Further analysis of the company's financial statements and industry benchmarks would provide more insight into the efficiency of their payables management.
Peer comparison
Dec 31, 2023