Arlo Technologies (ARLO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -34,892 | -24,211 | -55,074 | -49,426 | -104,908 |
| Total assets | US$ in thousands | 298,400 | 285,538 | 272,201 | 347,490 | 413,968 |
| Operating ROA | -11.69% | -8.48% | -20.23% | -14.22% | -25.34% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-34,892K ÷ $298,400K
= -11.69%
The operating return on assets (operating ROA) of Arlo Technologies has shown a fluctuating trend over the past five years. In December 2020, the operating ROA was -25.34%, indicating that the company generated a negative return on its assets from its core operations. There was a slight improvement in December 2021, with the operating ROA at -14.22%, but the company continued to operate below profitability.
By December 2022, the operating ROA decreased to -20.23%, suggesting a decline in the company's ability to efficiently generate profits from its assets. However, in December 2023, there was a notable improvement as the operating ROA improved to -8.48%, indicating a move towards a more efficient utilization of assets to generate returns.
In December 2024, the operating ROA decreased once again to -11.69%, albeit still in negative territory. The fluctuating nature of Arlo Technologies' operating ROA over the years highlights challenges in effectively managing assets to generate satisfactory returns from core operations. Further analysis of the company's cost structure and revenue generation may be necessary to understand the factors driving these fluctuations and to implement strategies for improved operational efficiency and profitability.
Peer comparison
Dec 31, 2024