Arlo Technologies (ARLO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 176,762 | 161,451 | 162,278 | 210,929 | 237,346 |
| Quick ratio | 0.86 | 0.85 | 0.70 | 0.83 | 0.87 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($82,032K
+ $69,419K
+ $—K)
÷ $176,762K
= 0.86
The quick ratio of Arlo Technologies has shown a declining trend over the five-year period from December 31, 2020, to December 31, 2024. The quick ratio decreased from 0.87 in 2020 to 0.83 in 2021, further dropping to 0.70 in 2022. However, there was a slight improvement in 2023 with the quick ratio increasing to 0.85 and maintaining stability at 0.86 in 2024.
The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio below 1.0 may indicate potential liquidity issues as the company may have difficulty meeting its immediate obligations. In the case of Arlo Technologies, the declining trend in the quick ratio in the initial years followed by a slight recovery suggests varying levels of liquidity risk over the period analyzed. Further monitoring of the quick ratio will be important to assess Arlo Technologies' ability to manage its short-term liquidity effectively.
Peer comparison
Dec 31, 2024