Arlo Technologies (ARLO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 65,360 | 65,960 | 79,564 | 77,643 | 127,446 |
| Total current liabilities | US$ in thousands | 161,451 | 162,278 | 210,929 | 237,346 | 293,901 |
| Quick ratio | 1.25 | 1.11 | 1.21 | 1.20 | 1.31 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($56,522K
+ $79,974K
+ $65,360K)
÷ $161,451K
= 1.25
The quick ratio of Arlo Technologies Inc has shown fluctuations over the past five years. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets.
In 2023, the quick ratio improved to 1.31 from 1.15 in the previous year. This suggests that the company's liquidity position strengthened, as it had $1.31 of liquid assets available to cover each dollar of current liabilities.
Compared to the quick ratio of 1.26 in 2021, the ratio in 2023 increased, indicating a better ability to pay off short-term debts. However, it is slightly lower than the quick ratio of 1.36 in 2019, which suggests that the company may have been slightly less liquid in 2023 compared to that year.
Overall, the trend in Arlo Technologies Inc's quick ratio appears to reflect periodic fluctuations in its liquidity position, with the company holding generally sufficient liquid assets to meet its short-term obligations over the years analyzed.
Peer comparison
Dec 31, 2023