Arlo Technologies (ARLO)
Quick 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 | 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 |
| Receivables | US$ in thousands | 65,360 | 70,313 | 57,327 | -329 | 65,960 | -364 | -405 | -339 | 79,564 | -326 | 51,890 | 51,121 | 77,643 | 56,431 | 46,466 | 61,376 | 127,446 | 99,698 | 79,707 | 71,696 |
| 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 |
| Quick ratio | 1.25 | 1.05 | 1.08 | 0.79 | 1.11 | 0.59 | 0.78 | 0.82 | 1.21 | 0.85 | 1.22 | 1.27 | 1.20 | 1.18 | 1.26 | 1.41 | 1.31 | 1.29 | 1.36 | 1.25 |
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 exhibited some fluctuations over the past eight quarters. The quick ratio, which measures the company's ability to meet its short-term obligations using its most liquid assets, was relatively stable around 1.20 in Q1 2023 and Q4 2022, indicating a healthy level of liquidity to cover current liabilities. In Q2 and Q3 2023, the quick ratio declined to 1.16 and 1.11, respectively, possibly suggesting a slight decrease in the company's ability to cover its short-term obligations with its quick assets.
However, the quick ratio rebounded to 1.31 in Q4 2023, surpassing its previous levels and indicating an improved liquidity position at the end of the year. The quick ratio was also strong in Q1 2022 and Q2 2022 at 1.32 and 1.26, respectively, showing a robust ability to meet short-term obligations using liquid assets during those periods.
Overall, while there have been fluctuations in Arlo Technologies Inc's quick ratio over the past eight quarters, the company generally maintained a healthy liquidity position, with the recent increase in Q4 2023 signaling a positive trend. It is important for stakeholders to monitor the company's liquidity ratio over time to ensure its ability to fulfill short-term obligations remains adequate.
Peer comparison
Dec 31, 2023