Arlo Technologies (ARLO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -24,903 | -56,879 | -60,138 | -104,864 | -85,221 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 103,276 | 87,695 | 112,652 | 133,767 | 203,376 |
| Return on total capital | -24.11% | -64.86% | -53.38% | -78.39% | -41.90% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-24,903K ÷ ($—K + $103,276K)
= -24.11%
The return on total capital for Arlo Technologies Inc has fluctuated significantly over the past five years. In 2023, the company reported a return of -24.11%, showing an improvement compared to the previous year where it was -62.80%. However, the return on total capital is still negative, indicating that the company is not effectively utilizing its total capital to generate profits. The trend of negative returns over the years suggests that Arlo Technologies Inc may be facing challenges in generating sufficient profits relative to the total capital invested in the business. Further analysis of the company's financial performance and operational efficiency is recommended to determine the underlying factors contributing to the low return on total capital.
Peer comparison
Dec 31, 2023