Arlo Technologies (ARLO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | -24,903 | -55,651 | -51,022 | -104,864 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 100,909 | 103,276 | 87,695 | 112,652 | 133,767 |
| Return on total capital | 0.00% | -24.11% | -63.46% | -45.29% | -78.39% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $100,909K)
= 0.00%
Analyzing the return on total capital for Arlo Technologies over the past five years, there has been a significant fluctuation in performance.
Starting with a notably low figure of -78.39% as of December 31, 2020, the company experienced a slight improvement in the following year, with a return on total capital of -45.29% as of December 31, 2021. However, the performance deteriorated once again in 2022, reaching -63.46%.
In the subsequent year, as of December 31, 2023, there was a further decrease in the return on total capital, although the negative figure lessened to -24.11%. Notably, as of December 31, 2024, the return on total capital improved to reach 0.00%, indicating a potential shift in the company's financial performance towards a breakeven point.
Overall, the trend in Arlo Technologies' return on total capital reveals a period of instability and challenges, with the company showing signs of progress towards a more favorable financial position in the most recent year. Further analysis would be required to understand the factors contributing to these fluctuations and to assess the sustainability of this positive trajectory.
Peer comparison
Dec 31, 2024