Arlo Technologies (ARLO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 33.76 | 46.20 | 33.22 | 33.04 | 35.24 | 54.35 | 29.95 | 28.62 | 32.24 | 35.07 | 37.93 | 52.28 | 58.56 | 58.99 | 55.25 | 49.33 | 56.80 | 150.32 | 194.69 | 290.03 |
| Days of sales outstanding (DSO) | days | 48.11 | 53.62 | 43.97 | — | 48.80 | — | — | — | 66.66 | — | 46.62 | 49.82 | 79.12 | 56.31 | 46.83 | 59.00 | 124.99 | 97.84 | 73.30 | 61.79 |
| Number of days of payables | days | 48.53 | 71.24 | 51.57 | 38.10 | 39.46 | 79.47 | 59.15 | 52.75 | 70.63 | 54.38 | 37.69 | 25.27 | 56.27 | 63.85 | 44.41 | 31.61 | 92.42 | 117.17 | 44.68 | 121.59 |
| Cash conversion cycle | days | 33.35 | 28.59 | 25.61 | -5.06 | 44.58 | -25.12 | -29.20 | -24.13 | 28.27 | -19.30 | 46.85 | 76.83 | 81.41 | 51.45 | 57.67 | 76.72 | 89.37 | 130.99 | 223.32 | 230.23 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.76 + 48.11 – 48.53
= 33.35
The cash conversion cycle of Arlo Technologies Inc has fluctuated over the past eight quarters, indicating variations in the efficiency of its working capital management. In Q4 2023, the company's cash conversion cycle was 29.63 days, representing the time taken to convert its investments in inventory and accounts receivable into cash receipts from customers. This was an increase from the previous quarter, Q3 2023, where the cycle was 21.26 days.
Throughout the quarters, the company's cash conversion cycle has shown volatility, with some periods exhibiting shorter cycles (such as Q2 2023 with 19.93 days) and others longer cycles (such as Q4 2022 with 43.35 days). A shorter cash conversion cycle typically indicates efficient management of working capital and quicker conversion of assets into cash, while a longer cycle may suggest inefficiencies or challenges in the cash conversion process.
The trend in Arlo Technologies Inc's cash conversion cycle over the past eight quarters underscores the importance of monitoring working capital efficiency and identifying opportunities to streamline operations. By analyzing these fluctuations, stakeholders can gain insights into the company's liquidity management and overall financial performance.
Peer comparison
Dec 31, 2023