Arlo Technologies (ARLO)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 45.86 | 56.73 | 49.72 | 50.23 | 43.32 | 60.56 | 44.02 | 42.99 | 47.95 | 70.54 | 38.23 | 37.39 | 42.84 | 47.40 | 51.10 | 68.78 | 78.26 | 78.70 | 73.47 | 65.56 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 45.86 | 56.73 | 49.72 | 50.23 | 43.32 | 60.56 | 44.02 | 42.99 | 47.95 | 70.54 | 38.23 | 37.39 | 42.84 | 47.40 | 51.10 | 68.78 | 78.26 | 78.70 | 73.47 | 65.56 |
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 fluctuations over the periods analyzed. Starting at 65.56 days on March 31, 2020, the cycle increased to 78.70 days by September 30, 2020, reflecting a longer period required to convert resources into cash. This trend continued until March 31, 2021, when the cycle reduced to 68.78 days, indicating an improvement in efficiency.
The company achieved its shortest cash conversion cycle of 37.39 days on March 31, 2022, displaying an optimal management of cash flows and working capital. However, by September 30, 2022, the cycle increased significantly to 70.54 days, indicating a potential slowdown in the cash conversion process.
Subsequently, there was a fluctuating trend observed in the cash conversion cycle, with improvements and deteriorations in efficiency. Notably, by December 31, 2024, Arlo Technologies managed to reduce the cycle to 45.86 days, showcasing a more efficient conversion of resources into cash compared to the earlier periods.
Overall, the analysis of Arlo Technologies' cash conversion cycle highlights the company's ability to manage working capital effectively to optimize cash flows, with periodic fluctuations suggesting varying levels of efficiency in converting resources into cash.
Peer comparison
Dec 31, 2024