Arlo Technologies (ARLO)
Working capital 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 current assets | US$ in thousands | 262,606 | 250,535 | 232,782 | 303,622 | 356,548 |
| Total current liabilities | US$ in thousands | 176,762 | 161,451 | 162,278 | 210,929 | 237,346 |
| Working capital turnover | 5.95 | 5.51 | 6.96 | 4.69 | 3.00 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $510,886K ÷ ($262,606K – $176,762K)
= 5.95
The working capital turnover for Arlo Technologies has shown a positive trend over the past five years, indicating an improvement in efficiency in utilizing its working capital. In 2020, the working capital turnover was 3.00, and it increased steadily to 4.69 in 2021, further reaching 6.96 in 2022, before decreasing slightly to 5.51 in 2023 and then rising again to 5.95 in 2024. This suggests that Arlo Technologies was able to generate sales revenue more efficiently relative to its working capital investment, which is a positive sign of effective working capital management. Overall, the increasing trend in working capital turnover reflects the company's ability to optimize its operating cycle and efficiently utilize its current assets to drive revenue growth.
Peer comparison
Dec 31, 2024