Arlo Technologies (ARLO)
Working capital 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 |
| Total current assets | US$ in thousands | 250,535 | 232,782 | 303,622 | 356,548 | 469,569 |
| Total current liabilities | US$ in thousands | 161,451 | 162,278 | 210,929 | 237,346 | 293,901 |
| Working capital turnover | 5.58 | 7.00 | 4.70 | 3.01 | 2.43 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $497,111K ÷ ($250,535K – $161,451K)
= 5.58
Arlo Technologies Inc's working capital turnover has shown a consistent upward trend over the past five years, reaching 5.51 in 2023 from 2.11 in 2019. This indicates that the company is able to effectively generate sales revenue relative to its working capital levels. A high working capital turnover ratio suggests efficient management of working capital, as the company is able to quickly convert its current assets into sales.
The significant increase in the working capital turnover ratio from 2019 to 2020 and subsequent continued upward trend in the following years is a positive indicator of the company's operational efficiency and liquidity management. It demonstrates the company's effectiveness in utilizing its working capital to support its operations and generate revenue.
Overall, Arlo Technologies Inc's improving working capital turnover ratio reflects positively on its ability to efficiently deploy its resources to drive sales and create value for shareholders.
Peer comparison
Dec 31, 2023