Arlo Technologies (ARLO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 285,538 | 272,201 | 347,490 | 413,968 | 542,712 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $285,538K
= 0.00
The debt-to-assets ratio for Arlo Technologies Inc has consistently been 0.00 for the past five years, from 2019 to 2023. This ratio indicates that the company has not utilized any debt to finance its assets during this period. A debt-to-assets ratio of 0.00 implies that the company's assets are entirely financed by equity, which can be perceived as a positive sign of financial stability and a strong financial position with lower financial risk.
However, it is essential to consider that a low or zero debt-to-assets ratio may also suggest missed opportunities for leveraging debt to potentially boost returns for shareholders. Additionally, the lack of debt could imply limited flexibility in terms of financial leverage and capital utilization. Overall, Arlo Technologies Inc's consistent zero debt-to-assets ratio reflects a conservative financial strategy that prioritizes stability and security in its capital structure.
Peer comparison
Dec 31, 2023