Arlo Technologies (ARLO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 2.96 | 2.76 | 3.10 | 3.08 | 3.09 |
Arlo Technologies has consistently demonstrated a strong solvency position based on its solvency ratios over the past five years. The company has maintained a Debt-to-assets ratio of 0.00 across all years, indicating that the company's total debt is effectively zero in relation to its total assets. This suggests that Arlo Technologies relies minimally on debt financing to support its operations and is not overly leveraged in terms of its asset base.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also been consistently at 0.00 over the same period, highlighting the company's reliance on equity rather than debt to finance its operations and investments. This indicates a healthy balance sheet structure with a lower risk of financial distress due to excessive debt levels.
The Financial leverage ratio shows a slight fluctuation over the years, ranging from 2.76 to 3.10. While the ratio indicates that the company's assets are financed at a multiple of its equity, the decreasing trend from 2023 to 2024 suggests a potential improvement in the company's financial risk profile.
Overall, Arlo Technologies' solvency ratios reflect a robust financial position, with minimal debt obligations in comparison to its assets, capital, and equity. This signifies a stable and sustainable capital structure that can support the company's long-term growth and viability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | -60.10 | -3.07 | -24.24 |
The interest coverage ratio for Arlo Technologies has shown a significant deterioration over the years. In December 2020, the interest coverage ratio was -24.24, indicating that the company's earnings were insufficient to cover its interest expenses. By December 2021, the ratio improved slightly to -3.07, but it still remains in negative territory.
However, the interest coverage ratio took a major downturn in December 2022, reaching -60.10. This sharp decline suggests that Arlo Technologies' ability to meet its interest obligations with its operating profits has worsened considerably.
Unfortunately, the data for December 2023 and December 2024 are unavailable ("—"), making it challenging to assess any potential trend in the interest coverage ratio beyond 2022. Overall, the negative values of the interest coverage ratio raise concerns about the company's financial health and its ability to manage its debt obligations effectively.