Arlo Technologies (ARLO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.71% | 27.57% | 24.80% | 15.46% | 8.37% |
| Operating profit margin | -5.01% | -11.53% | -13.80% | -29.27% | -19.93% |
| Pretax margin | -4.20% | -11.28% | -12.71% | -28.09% | -19.08% |
| Net profit margin | -4.43% | -11.48% | -12.86% | -28.26% | -20.10% |
Arlo Technologies Inc has shown an improving trend in its profitability ratios over the years. The gross profit margin has been consistently increasing, indicating the company's ability to control its production costs and markup products effectively. However, the operating profit margin, pretax margin, and net profit margin have shown negative values in recent years, indicating operational and financial challenges. Despite these challenges, there has been a gradual improvement in the profitability ratios, suggesting efforts to increase efficiency and control costs. Overall, Arlo Technologies Inc should continue to focus on improving its operational performance to enhance profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -8.72% | -20.90% | -17.31% | -25.33% | -15.70% |
| Return on assets (ROA) | -7.72% | -20.80% | -16.12% | -24.46% | -15.84% |
| Return on total capital | -24.11% | -64.86% | -53.38% | -78.39% | -41.90% |
| Return on equity (ROE) | -21.34% | -64.57% | -49.74% | -75.69% | -42.26% |
Arlo Technologies Inc's profitability ratios have shown fluctuating performance over the past five years. The Operating Return on Assets (Operating ROA) has ranged from -8.72% to -25.46%, reflecting operational efficiency in generating profits from its asset base. The Return on Assets (ROA) has displayed a similar trend, varying from -7.72% to -24.46%, indicating the company's ability to generate profits relative to its total assets.
Moreover, the Return on Total Capital has been negative and volatile, ranging from -24.11% to -78.43%, highlighting the company's inefficiency in utilizing all sources of capital effectively to generate returns. Additionally, the Return on Equity (ROE) has fluctuated significantly, with values between -21.34% and -75.69%, depicting the company's profitability in relation to shareholders' equity.
Overall, Arlo Technologies Inc's profitability ratios suggest challenges in maintaining consistent profitability and effectively utilizing both assets and capital to generate returns for its shareholders.