Arlo Technologies (ARLO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 82,032 | 56,522 | 84,024 | 175,749 | 186,127 |
| Short-term investments | US$ in thousands | 69,419 | 79,974 | 29,700 | 0 | 19,997 |
| Total current liabilities | US$ in thousands | 176,762 | 161,451 | 162,278 | 210,929 | 237,346 |
| Cash ratio | 0.86 | 0.85 | 0.70 | 0.83 | 0.87 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($82,032K
+ $69,419K)
÷ $176,762K
= 0.86
The cash ratio of Arlo Technologies has been fluctuating over the past five years. As of December 31, 2020, the company had a cash ratio of 0.87, indicating that it had $0.87 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased to 0.83 by the end of 2021, suggesting a slight decline in the company's liquidity position.
In 2022, the cash ratio further decreased to 0.70, indicating a potentially tighter liquidity position for Arlo Technologies. However, there was a slight improvement in 2023, with the cash ratio increasing to 0.85, suggesting a better ability to cover short-term obligations with cash on hand.
By the end of 2024, the cash ratio of Arlo Technologies stood at 0.86, showing a slightly improved liquidity position compared to the previous year. Overall, while the company's cash ratio has seen fluctuations over the years, it is essential for investors and stakeholders to monitor these trends to assess Arlo Technologies' ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024