Arlo Technologies (ARLO)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 33.79% | 31.80% | 30.64% | 28.74% | 27.57% | 26.26% | 24.71% | 24.21% | 24.80% | 24.77% | 24.10% | 20.63% | 15.46% | 12.18% | 9.29% | 9.96% | 9.62% | 7.28% | 11.67% | 15.34% |
| Operating profit margin | -5.02% | -9.79% | -12.40% | -13.01% | -11.53% | -8.06% | -8.58% | -11.99% | -13.80% | -16.84% | -17.46% | -20.14% | -29.27% | -18.43% | -22.22% | -22.19% | -22.90% | -39.43% | -32.49% | -26.22% |
| Pretax margin | -4.21% | -9.11% | -11.90% | -12.70% | -11.28% | -7.81% | -8.26% | -11.10% | -12.71% | -15.66% | -16.26% | -19.22% | -28.10% | -17.08% | -20.82% | -20.99% | -21.92% | -38.68% | -31.88% | -26.15% |
| Net profit margin | -4.44% | -9.38% | -12.23% | -13.02% | -11.48% | -7.98% | -8.42% | -11.25% | -12.86% | -15.83% | -16.42% | -19.40% | -28.27% | -18.16% | -21.97% | -22.12% | -23.09% | -38.89% | -32.07% | -26.30% |
Arlo Technologies Inc's profitability ratios show a fluctuating trend over the past eight quarters.
1. Gross Profit Margin: The gross profit margin has been on an increasing trend, indicating the company's ability to control its production costs and generate higher profits from its sales. The rise from 24.26% in Q1 2022 to 34.11% in Q4 2023 is a positive sign for Arlo.
2. Operating Profit Margin: The operating profit margin shows a declining trend, indicating that the company's operating expenses are eating into its profits. Despite the negative margins, the decreasing values from -9.76% in Q1 2022 to -5.07% in Q4 2023 show some improvement in cost management.
3. Pre-tax Margin: Similar to the operating profit margin, the pre-tax margin has also been negative and decreasing over the quarters. The company needs to focus on reducing its expenses further to improve profitability.
4. Net Profit Margin: The net profit margin, which reflects the company's overall profitability after accounting for all expenses, has shown fluctuations but remains negative. Arlo needs to work on enhancing its operational efficiency and cost control to achieve positive net profit margins.
In conclusion, while the increasing gross profit margin is a positive sign, Arlo Technologies Inc needs to address its operating and total expenses to improve its overall profitability.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -8.72% | -15.75% | -21.94% | -24.25% | -20.90% | -12.59% | -14.30% | -18.39% | -17.31% | -20.57% | -21.44% | -21.73% | -25.33% | -17.33% | -20.64% | -20.54% | -15.70% | -34.34% | -31.04% | -23.11% |
| Return on assets (ROA) | -7.72% | -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% | -15.84% | -33.87% | -30.63% | -23.19% |
| Return on total capital | -24.11% | -51.97% | -72.21% | -72.29% | -64.86% | -42.83% | -41.85% | -51.19% | -53.38% | -61.11% | -61.79% | -55.33% | -78.39% | -47.53% | -52.99% | -47.18% | -41.90% | -81.64% | -63.45% | -47.83% |
| Return on equity (ROE) | -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% | -42.26% | -80.53% | -62.63% | -47.99% |
Arlo Technologies Inc's profitability ratios show a consistent trend of decline over the quarters analyzed. The Operating return on assets (Operating ROA) has decreased from -8.72% in Q4 2023 to -23.58% in Q1 2023. The Return on assets (ROA) has followed a similar downward trajectory, reaching -24.27% in Q1 2023.
Furthermore, the return on total capital and return on equity (ROE) have also shown significant deterioration over the periods examined. The return on total capital has plummeted from -24.11% in Q4 2023 to -70.28% in Q1 2023. Similarly, the ROE has seen a decline from -21.34% in Q4 2023 to -72.34% in Q1 2023.
Overall, the profitability ratios indicate worsening performance in terms of generating profits relative to assets, capital, and equity. This suggests that Arlo Technologies Inc may be facing challenges in efficiently utilizing its resources to generate returns for its stakeholders. Further analysis and investigation into the company's operations and financial management practices may be necessary to address these concerning trends.