Arlo Technologies (ARLO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 103,276 | 87,695 | 112,652 | 133,767 | 203,376 |
| ROE | -21.34% | -64.57% | -49.74% | -75.69% | -42.26% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-22,036K ÷ $103,276K
= -21.34%
The return on equity (ROE) for Arlo Technologies Inc has shown significant fluctuations over the past five years. In 2023, the ROE was calculated at -21.34%, indicating a negative return on shareholder equity. This improvement compared to the prior year's ROE of -64.57% may suggest some progress in utilizing shareholder investments more efficiently.
Looking back, the company experienced a downward trend in ROE from 2019 to 2022, with the lowest ROE recorded at -75.69% in 2020. These negative ROE figures signify that the company's net income was insufficient to cover the cost of equity, resulting in overall shareholder value erosion during these periods.
It is essential for Arlo Technologies Inc to focus on improving its profitability and operational efficiency to increase the ROE metric positively. Investors and stakeholders may closely monitor future financial performance indicators to assess the company's ability to generate sustainable returns on equity and enhance long-term shareholder value.
Peer comparison
Dec 31, 2023