Arlo Technologies (ARLO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -23,411 | -23,869 | -26,145 | -21,373 | -24,903 | -45,442 | -57,606 | -60,919 | -55,451 | -41,079 | -41,571 | -46,329 | -49,075 | -58,109 | -61,061 | -75,214 | -104,908 | -121,910 | -136,029 | -140,602 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 100,909 | 96,909 | 99,268 | 99,937 | 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 |
| Return on total capital | -23.20% | -24.63% | -26.34% | -21.39% | -24.11% | -50.38% | -70.46% | -70.63% | -63.23% | -42.21% | -40.60% | -41.36% | -43.56% | -51.78% | -53.20% | -55.17% | -78.43% | -85.97% | -89.55% | -78.74% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-23,411K ÷ ($—K + $100,909K)
= -23.20%
Arlo Technologies has displayed a notably fluctuating performance in terms of return on total capital over the period from March 31, 2020, to December 31, 2024. The return on total capital started at a low point of -78.74% in March 2020 and deteriorated further to -89.55% by June 2020. Subsequently, there was a slight improvement to -78.43% by December 2020.
However, the return on total capital continued to exhibit inconsistency with a considerable decline to -55.17% in March 2021, reaching its lowest point in June 2021 at -53.20%. Nevertheless, there was a slight recovery seen in the following periods. The return on total capital improved to -40.60% by June 2022 but declined once again to -63.23% in December 2022.
The trend continued with fluctuations, showcasing some volatility in the company's capital productivity. By December 2024, the return on total capital had somewhat stabilized at -23.20%. It is evident that Arlo Technologies has experienced challenges in generating returns on its total capital consistently over the observed period, with some periods showing improvement amid overall volatility.
Peer comparison
Dec 31, 2024