Arlo Technologies (ARLO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 56,522 | 51,133 | 61,951 | 66,970 | 84,024 | 80,773 | 85,537 | 100,975 | 175,749 | 166,057 | 178,698 | 172,113 | 186,127 | 173,619 | 185,424 | 176,425 | 236,680 | 113,870 | 93,050 | 135,582 |
| Short-term investments | US$ in thousands | 79,974 | 74,916 | 61,724 | 51,703 | 29,700 | 44,499 | 49,721 | 44,566 | — | — | — | 5,000 | 19,997 | 19,992 | 20,030 | 30,157 | 19,990 | 39,941 | 44,877 | 44,792 |
| Total current liabilities | US$ in thousands | 161,451 | 186,156 | 167,077 | 149,422 | 162,278 | 211,113 | 173,231 | 176,503 | 210,929 | 194,723 | 188,355 | 179,430 | 237,346 | 211,752 | 200,103 | 190,545 | 293,901 | 197,281 | 159,998 | 201,172 |
| Cash ratio | 0.85 | 0.68 | 0.74 | 0.79 | 0.70 | 0.59 | 0.78 | 0.82 | 0.83 | 0.85 | 0.95 | 0.99 | 0.87 | 0.91 | 1.03 | 1.08 | 0.87 | 0.78 | 0.86 | 0.90 |
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 is a liquidity ratio that measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Based on the data provided for Arlo Technologies Inc over the past eight quarters, we observe fluctuations in the cash ratio. In Q4 2023, the cash ratio stood at 0.91, representing a significant increase from the previous quarter's ratio of 0.74 in Q3 2023. This suggests an improved liquidity position as the company had more cash and cash equivalents relative to its short-term liabilities in the most recent quarter.
Comparing the Q4 2023 cash ratio to the same quarter in the previous year, we see a noticeable improvement from 0.74 in Q4 2022 to 0.91 in Q4 2023. This indicates a positive trend in Arlo Technologies Inc's liquidity management over the year, reflecting a stronger ability to meet its short-term financial obligations.
Overall, the upward trend in the cash ratio for Arlo Technologies Inc signifies an enhanced liquidity position and increasing financial stability in recent quarters, which may indicate effective cash management strategies or improved operational performance. Monitoring this ratio over time can provide insights into the company's ability to weather short-term financial challenges and capitalize on growth opportunities.
Peer comparison
Dec 31, 2023