Arlo Technologies (ARLO)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.76 | 3.10 | 3.08 | 3.09 | 2.67 |
The solvency ratios of Arlo Technologies Inc provide insights into the company's long-term financial stability and ability to meet its debt obligations.
The Debt-to-assets ratio has consistently been reported as 0.00 over the past five years, indicating that the company has not relied on debt to finance its assets during this period. This suggests a strong financial position with low financial leverage.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also been consistently at 0.00, reflecting the company's minimal utilization of debt in its capital structure. This low level of debt indicates lower financial risk for the company as it is not heavily reliant on borrowed funds to support its operations.
The Financial leverage ratio has shown some fluctuation over the years, with a peak in 2022 at 3.10 and a decrease to 2.76 in 2023. This ratio compares the total assets of the company to its shareholders' equity and shows the extent to which the company is using debt to finance its operations. The downward trend in this ratio indicates a lower reliance on debt financing in recent years, which is generally positive for the company's solvency and financial health.
Overall, the consistently low debt ratios and the decreasing trend in the financial leverage ratio suggest that Arlo Technologies Inc has maintained a conservative financial strategy with limited debt exposure, which enhances its solvency position and decreases the risks associated with financial distress.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | -61.42 | -3.61 | -24.24 | -0.78 |
Based on the information provided in the table, the interest coverage ratio for Arlo Technologies Inc is not available for the years ending December 31 in 2019, 2020, 2021, 2022, or 2023. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. Without the values for the interest coverage ratio, it is difficult to assess the company's ability to generate sufficient earnings to cover its interest expenses. It is essential to have this ratio available to evaluate the company's financial health and risk regarding its debt obligations.