Arlo Technologies (ARLO)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -33,494 | -27,232 | -24,055 | -20,197 | -24,211 | -46,870 | -58,761 | -62,049 | -56,502 | -41,307 | -42,755 | -57,259 | -60,138 | -68,577 | -70,923 | -75,437 | -104,864 | -67,397 | -80,490 | -84,241 |
| Total assets | US$ in thousands | 298,400 | 312,375 | 295,806 | 289,762 | 390,338 | 297,637 | 269,021 | 257,083 | 272,201 | 331,216 | 299,678 | 311,790 | 347,490 | 333,326 | 330,781 | 347,194 | 413,968 | 388,899 | 389,957 | 410,176 |
| Operating ROA | -11.22% | -8.72% | -8.13% | -6.97% | -6.20% | -15.75% | -21.84% | -24.14% | -20.76% | -12.47% | -14.27% | -18.36% | -17.31% | -20.57% | -21.44% | -21.73% | -25.33% | -17.33% | -20.64% | -20.54% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-33,494K ÷ $298,400K
= -11.22%
Arlo Technologies' operating return on assets (operating ROA) has shown a fluctuating trend over the specified period. The operating ROA started at a significant negative percentage of around -20% in March 2020 and continued to be in the negative territory through December 2022. However, there was a gradual improvement in the metric from March 2023 onwards.
Specifically, the operating ROA improved from -24.14% in March 2023 to -6.20% in December 2023, indicating a positive shift in the company's ability to generate operating income relative to its total assets. This positive trend continued in the following periods, with operating ROA ranging from -6.97% to -11.22% from March to December 2024.
The improving trend in operating ROA suggests that Arlo Technologies has been able to enhance its operational efficiency and profitability in recent periods, potentially through better asset utilization or cost management. However, the metric still remains negative, indicating that the company may benefit from further optimizing its operations to generate higher returns relative to its asset base.
Peer comparison
Dec 31, 2024