Arlo Technologies (ARLO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 36.70% | 36.23% | 35.75% | 35.63% | 34.11% | 32.07% | 30.84% | 28.88% | 27.74% | 26.38% | 24.79% | 24.26% | 24.83% | 24.77% | 24.11% | 20.64% | 15.51% | 12.22% | 9.33% | 10.01% |
| Operating profit margin | -6.56% | -5.19% | -4.66% | -4.00% | -4.93% | -9.88% | -12.43% | -13.02% | -11.52% | -8.02% | -8.59% | -12.00% | -13.82% | -16.84% | -17.46% | -20.16% | -29.36% | -18.48% | -22.32% | -22.31% |
| Pretax margin | -5.76% | -4.55% | -4.03% | -3.30% | -4.25% | -9.19% | -11.98% | -12.76% | -11.35% | -7.84% | -8.29% | -11.12% | -12.72% | -15.66% | -16.26% | -19.23% | -28.17% | -17.12% | -20.91% | -21.11% |
| Net profit margin | -5.97% | -4.76% | -4.19% | -3.46% | -4.49% | -9.46% | -12.31% | -13.09% | -11.55% | -8.02% | -8.44% | -11.27% | -12.88% | -15.83% | -16.42% | -19.41% | -28.35% | -18.21% | -22.06% | -22.25% |
Arlo Technologies has shown a positive trend in its profitability ratios over the analyzed period. The gross profit margin has consistently improved, increasing from 10.01% on March 31, 2020, to 36.70% on December 31, 2024. This signifies the company's ability to control its production costs effectively and generate more profit from its core operations.
Similarly, the operating profit margin has shown significant improvement, moving from negative percentages to -6.56% by December 31, 2024. This indicates effective cost management and operational efficiency, leading to better profitability despite the initial losses.
The pretax margin also displays a positive trend, with the company reducing its losses consistently over the period. Starting at -21.11% on March 31, 2020, and reducing to -5.76% by December 31, 2024, this indicates the company's efforts to enhance its operational performance and financial health.
Furthermore, the net profit margin has also improved progressively, from -22.25% on March 31, 2020, to -5.97% by December 31, 2024, reflecting the company's ability to effectively manage expenses and enhance its bottom line profitability.
Overall, the improving profitability ratios of Arlo Technologies demonstrate a positive trajectory in the company's financial performance and efficiency in managing its costs and operations.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -10.22% | -7.99% | -7.31% | -6.02% | -5.65% | -15.08% | -21.63% | -24.27% | -20.80% | -12.46% | -14.02% | -17.25% | -16.12% | -19.33% | -20.17% | -20.92% | -24.46% | -17.08% | -20.40% | -20.48% |
| Return on total capital | -23.20% | -24.63% | -26.34% | -21.39% | -24.11% | -50.38% | -70.46% | -70.63% | -63.23% | -42.21% | -40.60% | -41.36% | -43.56% | -51.78% | -53.20% | -55.17% | -78.43% | -85.97% | -89.55% | -78.74% |
| Return on equity (ROE) | -30.23% | -25.75% | -21.79% | -17.45% | -21.34% | -49.76% | -71.18% | -72.34% | -64.57% | -42.40% | -41.04% | -48.02% | -49.74% | -57.43% | -58.12% | -53.29% | -75.69% | -46.84% | -52.37% | -47.04% |
Based on the provided data for Arlo Technologies' profitability ratios, the company has experienced fluctuating levels of profitability over the analyzed periods.
Operating return on assets (Operating ROA):
- The Operating ROA has generally been negative, ranging from -12.47% to -25.33%, with a declining trend towards the end of the period. This indicates that the company has not been efficient in generating operating income relative to its assets.
Return on assets (ROA):
- The ROA also shows negative values, ranging from -5.65% to -24.46%, with a similar declining trend in profitability over time. This ratio reflects the company's ability to generate profits from its total assets.
Return on total capital:
- The Return on Total Capital has been consistently negative, with values ranging from -24.11% to -89.55%. This indicates that Arlo Technologies has not been able to effectively generate returns on its total invested capital.
Return on equity (ROE):
- The ROE has also been negative throughout the period, ranging from -17.45% to -75.69%. This ratio highlights the company's inability to deliver returns to its equity holders.
Overall, the negative values of these profitability ratios suggest that Arlo Technologies has struggled to generate profits efficiently and effectively utilize its assets and capital to create value for its shareholders. Management may need to focus on improving operational efficiency and profitability to enhance the company's financial performance.