Arlo Technologies (ARLO)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 495,885 | 478,632 | 475,901 | 479,098 | 493,340 | 517,147 | 499,348 | 478,314 | 435,648 | 407,138 | 406,300 | 374,509 | 358,206 | 365,783 | 362,185 | 379,712 | 372,177 | 371,922 | 396,887 | 423,525 |
| Total current assets | US$ in thousands | 250,535 | 260,958 | 232,749 | 218,847 | 232,782 | 291,093 | 257,354 | 269,648 | 303,622 | 288,097 | 285,595 | 291,911 | 356,548 | 329,397 | 327,682 | 341,554 | 469,569 | 343,714 | 326,315 | 394,418 |
| Total current liabilities | US$ in thousands | 161,451 | 186,156 | 167,077 | 149,422 | 162,278 | 211,113 | 173,231 | 176,503 | 210,929 | 194,723 | 188,355 | 179,430 | 237,346 | 211,752 | 200,103 | 190,545 | 293,901 | 197,281 | 159,998 | 201,172 |
| Working capital turnover | 5.57 | 6.40 | 7.25 | 6.90 | 7.00 | 6.47 | 5.94 | 5.14 | 4.70 | 4.36 | 4.18 | 3.33 | 3.01 | 3.11 | 2.84 | 2.51 | 2.12 | 2.54 | 2.39 | 2.19 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $495,885K ÷ ($250,535K – $161,451K)
= 5.57
Arlo Technologies Inc's working capital turnover has shown a positive trend over the past eight quarters, ranging from 5.12 to 7.20. The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to support sales operations.
The consistent improvement in the working capital turnover from Q1 2022 to Q2 2023 suggests that Arlo Technologies Inc has been able to generate more revenue using its existing working capital resources. This increasing trend is a positive sign for the company's operational efficiency and liquidity management.
However, it is important to note that a very high working capital turnover ratio may indicate aggressive sales strategies that could potentially strain the company's liquidity. Therefore, it is crucial for Arlo Technologies Inc to maintain a balance between maximizing working capital turnover and ensuring sufficient liquidity to support its operations and growth initiatives.
Peer comparison
Dec 31, 2023