Arlo Technologies (ARLO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.70% | 34.11% | 27.74% | 24.83% | 15.51% |
| Operating profit margin | -6.83% | -4.93% | -11.23% | -11.36% | -29.37% |
| Pretax margin | -5.76% | -4.25% | -11.35% | -12.72% | -28.17% |
| Net profit margin | -5.97% | -4.49% | -11.55% | -12.88% | -28.35% |
Arlo Technologies has shown a significant improvement in its Gross Profit Margin over the past few years, increasing from 15.51% in 2020 to 36.70% in 2024. This indicates that the company has been able to effectively manage its production costs and generate higher profits from its sales.
However, the Operating Profit Margin, Pretax Margin, and Net Profit Margin have all been negative during the same period. The Operating Profit Margin has improved from -29.37% in 2020 to -6.83% in 2024, which suggests that Arlo Technologies has been able to reduce its operating expenses relative to its revenue.
Despite these improvements, the company still needs to work on increasing its profitability as indicated by the negative margins. It is important for Arlo Technologies to continue focusing on cost control measures and enhancing revenue streams to achieve positive profitability ratios in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -11.69% | -8.48% | -20.23% | -14.22% | -25.34% |
| Return on assets (ROA) | -10.22% | -7.72% | -20.80% | -16.12% | -24.46% |
| Return on total capital | 0.00% | -24.11% | -63.46% | -45.29% | -78.39% |
| Return on equity (ROE) | -30.23% | -21.34% | -64.57% | -49.74% | -75.69% |
Based on the provided data, Arlo Technologies' profitability ratios exhibit a fluctuating trend over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has ranged from -25.34% in 2020 to -8.48% in 2023, showing some improvement over the years but still indicating that the company is not effectively generating profits from its operating assets.
2. Return on Assets (ROA):
- The ROA has varied from -24.46% in 2020 to -7.72% in 2023. Although there is some improvement, the company's ability to generate profits from its total assets remains negative.
3. Return on Total Capital:
- The Return on Total Capital was highly negative, reaching -78.39% in 2020 but improving to 0.00% in 2024. This may indicate challenges in effectively utilizing all sources of capital to generate returns.
4. Return on Equity (ROE):
- The ROE has fluctuated from -75.69% in 2020 to -21.34% in 2023. While there has been some improvement, the company is still facing difficulties in generating profits for its shareholders.
In summary, Arlo Technologies has shown some improvement in its profitability ratios over the years, but it continues to face challenges in effectively utilizing its assets, capital, and equity to generate significant returns. The company may need to focus on implementing strategies to enhance profitability and create more value for its stakeholders.