Arlo Technologies (ARLO)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 298,400 | 312,375 | 295,806 | 289,762 | 390,338 | 297,637 | 269,021 | 257,083 | 272,201 | 331,216 | 299,678 | 311,790 | 347,490 | 333,326 | 330,781 | 347,194 | 413,968 | 388,899 | 389,957 | 410,176 |
| 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 |
| Financial leverage ratio | 2.96 | 3.22 | 2.98 | 2.90 | 3.78 | 3.30 | 3.29 | 2.98 | 3.10 | 3.40 | 2.93 | 2.78 | 3.08 | 2.97 | 2.88 | 2.55 | 3.09 | 2.74 | 2.57 | 2.30 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $298,400K ÷ $100,909K
= 2.96
Arlo Technologies' financial leverage ratio has shown fluctuations over the past few years. The ratio has generally been increasing, indicating that the company has been relying more on debt financing to support its operations and growth. As of December 31, 2024, the financial leverage ratio stood at 2.96, which suggests that the company's debt levels were 2.96 times its equity.
The trend of increasing financial leverage over the years could signal that Arlo Technologies has been taking on more debt to fund its activities. While a moderate level of leverage can be common in many industries, high levels of debt can increase the company's risk profile, particularly in times of economic downturn or rising interest rates.
It would be essential for investors and stakeholders to closely monitor Arlo Technologies' financial leverage ratio to assess the company's ability to repay its debt obligations and manage its financial health effectively. Additionally, the management's strategy regarding debt management and capital structure should be considered to understand the rationale behind the company's leverage levels.
Peer comparison
Dec 31, 2024