Arlo Technologies (ARLO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 497,111 | 493,340 | 435,648 | 358,248 | 427,625 |
| Receivables | US$ in thousands | 65,360 | 65,960 | 79,564 | 77,643 | 127,446 |
| Receivables turnover | 7.61 | 7.48 | 5.48 | 4.61 | 3.36 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $497,111K ÷ $65,360K
= 7.61
The receivables turnover for Arlo Technologies Inc has been showing an increasing trend over the past five years, indicating that the company is collecting its accounts receivables more efficiently. The receivables turnover ratio has improved from 2.91 in 2019 to 7.51 in 2023.
A higher receivables turnover ratio suggests that the company is collecting cash from its customers more quickly, which is a positive sign of its liquidity and operational efficiency. Arlo Technologies Inc's ability to convert its accounts receivables into cash has significantly improved, reflecting stronger credit control policies or more effective collection efforts.
This trend indicates that Arlo Technologies Inc has been managing its credit and collection activities effectively, potentially reducing the risk of bad debts or overdue receivables. The company's consistent improvement in the receivables turnover ratio reflects positively on its working capital management and overall financial health.
Peer comparison
Dec 31, 2023