Arlo Technologies (ARLO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -22,036 | -56,626 | -56,029 | -101,251 | -85,951 |
| Total assets | US$ in thousands | 285,538 | 272,201 | 347,490 | 413,968 | 542,712 |
| ROA | -7.72% | -20.80% | -16.12% | -24.46% | -15.84% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-22,036K ÷ $285,538K
= -7.72%
Arlo Technologies Inc's return on assets (ROA) has exhibited significant fluctuations over the past five years. ROA reflects the company's ability to generate profits from its assets. The negative values indicate that Arlo Technologies Inc has not been efficiently utilizing its assets to generate profits during these periods.
The ROA deteriorated from -15.84% in 2019 to -24.46% in 2020, indicating a significant decline in profitability relative to the assets employed. However, there was a slight improvement in 2021 with ROA at -16.12%, suggesting a partial recovery in the company's asset utilization efficiency.
In the subsequent years, there was a further decline in ROA with -20.80% in 2022 and -7.72% in 2023. This downward trend may indicate ongoing challenges in effectively leveraging the company's assets to generate profits.
Overall, the negative ROA figures suggest that Arlo Technologies Inc's profitability in relation to its assets has been suboptimal in recent years, necessitating a closer examination of the company's operational efficiency and strategic asset management practices.
Peer comparison
Dec 31, 2023