Arlo Technologies (ARLO)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 510,886 | 491,176 | 490,414 | 435,137 | 357,154 |
| Total assets | US$ in thousands | 298,400 | 285,538 | 272,201 | 347,490 | 413,968 |
| Total asset turnover | 1.71 | 1.72 | 1.80 | 1.25 | 0.86 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $510,886K ÷ $298,400K
= 1.71
The total asset turnover ratio measures a company's ability to generate sales from its assets. A higher ratio indicates that the company is more efficient in utilizing its assets to generate revenue. In the case of Arlo Technologies, the total asset turnover has shown an increasing trend over the years, from 0.86 in 2020 to 1.71 in 2024.
This improvement suggests that Arlo Technologies has become more efficient in using its assets to generate sales, indicating better operational performance and potentially improved overall profitability. The company's ability to generate more revenue from its assets reflects positively on its asset management and operational efficiency. It shows that Arlo Technologies is efficiently utilizing its assets to drive sales growth and create value for its shareholders.
Peer comparison
Dec 31, 2024