Arlo Technologies (ARLO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -24,903 | -46,870 | -59,034 | -62,347 | -56,879 | -41,684 | -42,859 | -57,338 | -60,138 | -68,577 | -70,923 | -75,437 | -104,864 | -67,397 | -80,490 | -84,241 | -85,221 | -146,632 | -128,954 | -111,033 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 103,276 | 90,193 | 81,756 | 86,251 | 87,695 | 97,321 | 102,401 | 112,004 | 112,652 | 112,224 | 114,785 | 136,330 | 133,767 | 141,807 | 151,904 | 178,561 | 203,376 | 179,606 | 203,230 | 232,141 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-24,903K ÷ ($—K + $103,276K)
= -24.11%
Arlo Technologies Inc's return on total capital has shown a declining trend over the past eight quarters. The company experienced a significant decrease in return on total capital from Q4 2022 to Q1 2023, with negative returns ranging from -40.84% to -70.28%. This implies that the company's profitability in generating returns from its total capital employed has weakened over time. Negative returns on total capital indicate that the company is not efficiently utilizing its capital to generate profits. Further analysis and investigation into the company's operational efficiency, capital structure, and overall financial performance may be warranted to address the declining trend in return on total capital.
Peer comparison
Dec 31, 2023