Arlo Technologies (ARLO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 250,535 | 232,782 | 303,622 | 356,548 | 469,569 |
| Total current liabilities | US$ in thousands | 161,451 | 162,278 | 210,929 | 237,346 | 293,901 |
| Current ratio | 1.55 | 1.43 | 1.44 | 1.50 | 1.60 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $250,535K ÷ $161,451K
= 1.55
The current ratio of Arlo Technologies Inc has shown some fluctuations over the past five years. The ratio was 1.55 at the end of 2023, which indicates that the company had $1.55 in current assets available to cover each dollar of current liabilities. This was an improvement compared to the previous year, where the current ratio was 1.43.
Looking further back, the current ratio was relatively stable around the range of 1.44 to 1.60 between 2019 and 2022. A current ratio above 1.0 typically suggests that a company has more than enough short-term assets to cover its short-term liabilities, indicating a healthy liquidity position.
However, it is important to note that a very high current ratio may also imply that the company is not efficiently utilizing its current assets. On the other hand, a very low current ratio could indicate potential liquidity issues. Monitoring trends in the current ratio over time can provide insight into the company's ability to manage its short-term financial obligations.
Peer comparison
Dec 31, 2023