A10 Network (ATEN)

Short-term

Turnover ratios

The Inventory turnover ratio for A10 Network has been relatively stable over the past five years, with a slight increase in 2022 followed by a decrease in 2023. This indicates that the company is efficiently managing its inventory levels, on average, the company is turning over its inventory approximately 7 times a year.

The Receivables turnover ratio for A10 Network has shown a declining trend over the five-year period, suggesting that the company is taking longer to collect its receivables. This may indicate potential issues with credit policies or customer payment patterns.

The Payables turnover ratio for A10 Network demonstrates a significant decrease from 2020 to 2024, highlighting that the company is taking longer to pay its suppliers. This could be a strategic move to optimize cash flow or may indicate challenges in managing payables efficiently.

The Working capital turnover ratio for A10 Network has fluctuated over the years, reaching its peak in 2022. This ratio reflects how effectively the company is utilizing its working capital to generate sales. The slight decrease in recent years may indicate a less efficient use of working capital.

Overall, analyzing these activity ratios provides insights into how effectively A10 Network is managing its inventory, receivables, payables, and working capital. Further analysis and comparison with industry benchmarks can help identify areas for improvement and optimization in the company's operations.

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Average number of days

The activity ratios of A10 Network provide insight into how efficiently the company is managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The average number of days it takes for A10 Network to sell its inventory has been relatively stable over the years, ranging from 42.57 days in 2022 to 53.38 days in 2023. A lower DOH indicates that the company is moving its inventory more quickly, which can be beneficial for cash flow and minimizing carrying costs.

2. Days of Sales Outstanding (DSO):
- A10 Network's DSO measures how long it takes for the company to collect revenue from its customers. The DSO has been increasing over the years, from 82.62 days in 2020 to 106.96 days in 2024. This trend suggests that the company may be facing challenges in collecting payments efficiently, potentially impacting cash flow and liquidity.

3. Number of Days of Payables:
- The number of days A10 Network takes to pay its suppliers has also been increasing, from 11.72 days in 2020 to 28.45 days in 2024. A longer payment period may indicate that the company is using its supplier financing effectively to manage working capital, but it could also strain relationships if payment terms become unfavorable.

In summary, A10 Network's activity ratios show a mixed picture. While the company has been maintaining a stable inventory turnover, the increasing DSO and payables period may signal potential cash flow challenges and inefficiencies in managing working capital. Further analysis and monitoring of these ratios are essential to ensure optimal financial performance.

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Long-term

The fixed asset turnover ratio for A10 Network has been on a declining trend over the years, starting at 28.59 in 2020 and dropping to 6.69 in 2024. This indicates that the company is generating less revenue relative to its investment in fixed assets.

Similarly, the total asset turnover ratio has also been decreasing, from 0.78 in 2020 to 0.60 in 2024. This suggests that A10 Network is becoming less efficient in generating sales from its total assets.

Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios indicates potential inefficiencies in asset utilization and revenue generation for A10 Network over the past few years. Further investigation may be needed to identify the underlying reasons for these deteriorating ratios and to formulate strategies for improvement.