Arlo Technologies (ARLO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 298,400 | 285,538 | 272,201 | 347,490 | 413,968 |
| Total stockholders’ equity | US$ in thousands | 100,909 | 103,276 | 87,695 | 112,652 | 133,767 |
| Financial leverage ratio | 2.96 | 2.76 | 3.10 | 3.08 | 3.09 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $298,400K ÷ $100,909K
= 2.96
The financial leverage ratio of Arlo Technologies has shown variability over the years. It was relatively stable between December 31, 2020, and December 31, 2022, ranging from 3.08 to 3.10. However, a notable decrease in the ratio was observed by December 31, 2023, when it dropped to 2.76. This decline suggests a potential improvement in the company's ability to meet its financial obligations with equity rather than debt. The ratio then increased slightly by December 31, 2024, reaching 2.96. Overall, Arlo Technologies' financial leverage ratio indicates a mix of debt and equity in its capital structure, with a recent trend towards a lower reliance on debt financing.
Peer comparison
Dec 31, 2024