Arlo Technologies (ARLO)
Total asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 510,886 | 524,407 | 516,743 | 504,372 | 491,176 | 474,610 | 472,764 | 476,667 | 490,414 | 514,748 | 497,740 | 477,332 | 435,137 | 407,112 | 406,199 | 374,260 | 357,154 | 364,731 | 360,611 | 377,577 |
| Total assets | US$ in thousands | 298,400 | 312,375 | 295,806 | 289,762 | 390,338 | 297,637 | 269,021 | 257,083 | 272,201 | 331,216 | 299,678 | 311,790 | 347,490 | 333,326 | 330,781 | 347,194 | 413,968 | 388,899 | 389,957 | 410,176 |
| 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 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $510,886K ÷ $298,400K
= 1.71
Total asset turnover measures a company's ability to generate revenue from its total assets. A higher total asset turnover indicates that the company is efficiently utilizing its assets to generate sales.
Analyzing Arlo Technologies' total asset turnover from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The ratio started at 0.92 in March 2020 and remained relatively stable around this level until December 2020. However, it decreased to 0.86 by the end of December 2020, suggesting a decrease in revenue generated per dollar of assets.
From March 2021 onwards, the total asset turnover began to increase significantly, reaching its peak at 1.85 in March 2023. This upward trend indicates improved efficiency in asset utilization and a higher revenue generation for Arlo Technologies during this period.
However, from March 2023 onwards, there was a noticeable decline in the total asset turnover, dropping to 1.26 by December 2023. The ratio then fluctuated around 1.7 in the following quarters, showing some stability but not reaching the previous peak levels observed in early 2023.
Overall, despite the fluctuations in the total asset turnover ratio, Arlo Technologies has shown periods of improved efficiency in utilizing its assets to generate revenue. Monitoring this ratio over time can provide insights into the company's operational performance and asset management strategies.
Peer comparison
Dec 31, 2024