Arlo Technologies (ARLO)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 45.86 | 43.32 | 47.95 | 42.84 | 78.26 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 45.86 | 43.32 | 47.95 | 42.84 | 78.26 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.86 + — – —
= 45.86
The cash conversion cycle of Arlo Technologies has shown a fluctuating trend over the past five years. As of December 31, 2020, the cash conversion cycle was 78.26 days, indicating that it took the company approximately 78 days to convert its investments in inventory and other resources into cash from sales.
Subsequently, there was a significant improvement in efficiency by the end of December 31, 2021, with the cash conversion cycle decreasing to 42.84 days. This suggests that Arlo Technologies was able to more quickly convert its resources into cash during this period.
However, by December 31, 2022, the cash conversion cycle increased to 47.95 days, indicating a slight slowdown in the company's ability to convert its investments into cash. The trend continued to improve by December 31, 2023, where the cycle decreased to 43.32 days, suggesting better efficiency in managing working capital.
By the end of December 31, 2024, the cash conversion cycle slightly increased to 45.86 days, indicating that there was a moderate extension in the time taken to convert resources into cash compared to the previous year.
In conclusion, though there were fluctuations in the cash conversion cycle of Arlo Technologies, the company demonstrated overall improvements in efficiency in converting investments into cash over the five-year period.
Peer comparison
Dec 31, 2024