Arlo Technologies (ARLO)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 82,032 | 77,032 | 62,928 | 62,054 | 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 |
| Short-term investments | US$ in thousands | 69,419 | 69,542 | 81,077 | 80,809 | 79,974 | 74,916 | 61,724 | 51,703 | 29,700 | 44,499 | 49,721 | 44,566 | 0 | 0 | 0 | 5,000 | 19,997 | 19,992 | 20,030 | 30,157 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 176,762 | 197,274 | 177,613 | 170,372 | 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 |
| Quick ratio | 0.86 | 0.74 | 0.81 | 0.84 | 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 |
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 fluctuations over the reporting periods, ranging from 0.59 to 1.08. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A ratio above 1 indicates that the company can cover its current liabilities with its quick assets, such as cash, marketable securities, and accounts receivable.
From March 2020 to September 2021, the quick ratio decreased gradually from 1.08 to 0.85, suggesting a potential decrease in liquidity and ability to meet short-term obligations. However, it saw a slight improvement in the following periods, reaching 0.86 by December 2024.
Despite the fluctuations, it is important to note that a quick ratio above 1 is generally considered healthy, indicating a strong ability to cover short-term liabilities. Arlo Technologies should continue to monitor and manage its liquidity position to ensure it can meet its financial obligations effectively.
Peer comparison
Dec 31, 2024