Arlo Technologies (ARLO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -24,903 | -56,879 | -60,138 | -104,864 | -85,221 |
| Total assets | US$ in thousands | 285,538 | 272,201 | 347,490 | 413,968 | 542,712 |
| Operating ROA | -8.72% | -20.90% | -17.31% | -25.33% | -15.70% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-24,903K ÷ $285,538K
= -8.72%
Arlo Technologies Inc's operating return on assets (Operating ROA) has fluctuated over the past five years. For the most recent fiscal year ending on December 31, 2023, the company reported an Operating ROA of -8.72%. This indicates that the company generated a negative return from its operating activities in relation to its total assets for that year.
Comparing this to the previous years, Arlo Technologies Inc's Operating ROA was also negative in 2022 (-20.23%), 2021 (-14.22%), 2020 (-25.34%), and 2019 (-25.46%). The consistent negative trend in Operating ROA over the years suggests that the company has been struggling to efficiently generate profits from its core operations relative to its asset base.
This downward trend in Operating ROA could indicate inefficiencies in the company's operations, a decline in profitability, or challenges in effectively utilizing its assets to generate income. Investors and stakeholders may be concerned about the company's ability to improve its operational performance and profitability in the future, as reflected in the negative Operating ROA figures.
Peer comparison
Dec 31, 2023