Arlo Technologies (ARLO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 56,522 | 84,024 | 175,749 | 186,127 | 236,680 |
| Short-term investments | US$ in thousands | 79,974 | 29,700 | — | 19,997 | 19,990 |
| Total current liabilities | US$ in thousands | 161,451 | 162,278 | 210,929 | 237,346 | 293,901 |
| Cash ratio | 0.85 | 0.70 | 0.83 | 0.87 | 0.87 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($56,522K
+ $79,974K)
÷ $161,451K
= 0.85
The cash ratio of Arlo Technologies Inc has fluctuated over the past five years, ranging from 0.74 to 0.93. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.
In 2023, the cash ratio stands at 0.91, reflecting a slight improvement compared to the previous year but remaining below the level seen in 2019. This suggests that Arlo Technologies Inc has a sufficient amount of cash and cash equivalents to cover nearly 91% of its current liabilities, indicating a decent liquidity position.
However, it is essential to consider the trend of the cash ratio over time and compare it to industry benchmarks to assess the company's liquidity position effectively. Further analysis of the company's cash management practices and the efficiency of its working capital management would provide additional insights into its financial health.
Peer comparison
Dec 31, 2023