Arlo Technologies (ARLO)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 5.95 | 6.37 | 6.04 | 5.90 | 5.51 | 6.34 | 7.20 | 6.87 | 6.96 | 6.44 | 5.92 | 5.12 | 4.69 | 4.36 | 4.18 | 3.33 | 3.00 | 3.10 | 2.83 | 2.50 |
The analysis of Arlo Technologies' activity ratios reveals the following trends:
1. Inventory Turnover:
- The company's inventory turnover has shown fluctuations over the years, but there is a general upward trend from March 2020 to December 2024.
- This indicates that Arlo Technologies has been improving its efficiency in managing its inventory, with inventory being sold and replenished at a faster rate.
2. Receivables Turnover:
- The data provided does not include receivables turnover ratios for the periods mentioned.
- Without this information, it is not possible to assess how quickly the company is collecting on its accounts receivable.
3. Payables Turnover:
- Similar to receivables turnover, payables turnover ratios are not available for the periods mentioned.
- Lack of payables turnover data limits the interpretation of how efficiently Arlo Technologies is managing its trade payables.
4. Working Capital Turnover:
- The working capital turnover ratio has shown an increasing trend from March 2020 to September 2023, after which it fluctuated until December 2024.
- A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital, which reflects positively on its operational efficiency.
In conclusion, Arlo Technologies has made improvements in its inventory management efficiency and working capital turnover. However, the lack of data on receivables and payables turnover limits a comprehensive analysis of the company's overall activity ratios.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 45.86 | 56.73 | 49.72 | 50.23 | 43.32 | 60.56 | 44.02 | 42.99 | 47.95 | 70.54 | 38.23 | 37.39 | 42.84 | 47.40 | 51.10 | 68.78 | 78.26 | 78.70 | 73.47 | 65.56 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Arlo Technologies' Days of Inventory on Hand (DOH) has shown fluctuations over the years. The company started with 65.56 days of inventory on hand as of March 31, 2020, which increased to 78.70 days by September 30, 2020. However, there was a significant decrease in days of inventory on hand by June 30, 2021, to 51.10 days, indicating more efficient inventory management. The trend continued to improve with further reductions in inventory days, reaching a low of 37.39 days by March 31, 2022. Subsequently, there was an increase back to 70.54 days on September 30, 2022, before decreasing again.
Conversely, information pertaining to Days of Sales Outstanding (DSO) and Number of Days of Payables is not provided, making it challenging to analyze Arlo Technologies' efficiency in collecting receivables or managing payables.
In conclusion, Arlo Technologies has shown some improvements in managing its inventory levels over the years, with fluctuations in the days of inventory on hand. However, a comprehensive analysis of activity ratios would require additional data on DSO and payables turnover to provide a holistic view of the company's operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 26.45 | 73.63 | 67.56 | 66.85 | 78.13 | 66.56 | 56.01 | 17.83 | 15.48 | 15.32 | 25.64 | 22.57 | 21.67 | 8.15 | 7.63 |
| Total asset turnover | 1.71 | 1.68 | 1.75 | 1.74 | 1.26 | 1.59 | 1.76 | 1.85 | 1.80 | 1.55 | 1.66 | 1.53 | 1.25 | 1.22 | 1.23 | 1.08 | 0.86 | 0.94 | 0.92 | 0.92 |
Arlo Technologies' long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate sales.
1. Fixed Asset Turnover: This ratio measures how efficiently the company is using its fixed assets to generate revenue. Arlo Technologies has shown a significant improvement in its fixed asset turnover ratio over the years, with a clear upward trend. The ratio has increased from 7.63 in March 2020 to a peak of 78.13 in September 2022, indicating a substantial improvement in the company's ability to generate sales from its fixed assets. However, there was a slight decline in the ratio in the following quarters, dropping to 26.45 in September 2023. It is important to note that the ratio for the last few quarters is not available, suggesting a potential change in the company's fixed asset utilization that may require further investigation.
2. Total Asset Turnover: This ratio indicates how efficiently the company is using all its assets to generate sales. Arlo Technologies' total asset turnover ratio has shown some fluctuations over the period under consideration. From March 2020 to December 2022, the ratio increased steadily from 0.92 to 1.80, indicating improved efficiency in asset utilization. However, the ratio decreased to 1.26 in December 2023 before bouncing back to 1.74 in March 2024. The most recent data points show a consistent total asset turnover ratio around 1.7, suggesting that the company is effectively generating sales relative to its total assets.
Overall, analyzing Arlo Technologies' long-term activity ratios indicates a positive trend in asset utilization efficiency, with the company demonstrating improvements in both fixed asset turnover and total asset turnover ratios. Tracking these ratios over time can help stakeholders assess the company's ability to efficiently generate revenue and manage its assets effectively.