Arlo Technologies (ARLO)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | -24,903 | -55,651 | -51,022 | -104,864 |
| Interest expense | US$ in thousands | — | — | 926 | 16,638 | 4,326 |
| Interest coverage | — | — | -60.10 | -3.07 | -24.24 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
Interest coverage ratio indicates a company's ability to meet its interest obligations with its operating income. In the case of Arlo Technologies, the interest coverage ratio has shown significant variability over the years.
As of December 31, 2020, the interest coverage ratio was -24.24, suggesting that the company's operating income was insufficient to cover its interest expenses. This raises concerns about Arlo Technologies' ability to meet its interest payments comfortably.
By December 31, 2021, the interest coverage improved to -3.07. While this is still a negative ratio, it indicates a slight improvement in the company's ability to cover its interest expenses with operating income.
However, the situation worsened significantly by December 31, 2022, with the interest coverage ratio dropping to -60.10. This indicates a substantial decline in Arlo Technologies' ability to cover interest payments, raising red flags about the company's financial health and sustainability.
Unfortunately, there is no data available for December 31, 2023, and December 31, 2024, which makes it challenging to assess the company's performance in those periods.
In conclusion, Arlo Technologies' interest coverage ratio has shown instability and significant challenges in meeting its interest obligations with operating income. Investors and stakeholders should closely monitor the company's financial health and management of interest expenses to assess its future sustainability.
Peer comparison
Dec 31, 2024