A10 Network (ATEN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.84 | 8.57 | 7.28 | 7.29 | 7.56 |
| Receivables turnover | 3.39 | 3.84 | 4.05 | 4.42 | 3.97 |
| Payables turnover | 22.90 | 25.11 | 23.86 | 31.15 | 22.30 |
| Working capital turnover | 1.57 | 2.02 | 1.49 | 1.68 | 1.72 |
Activity ratios provide insights into how effectively a company is managing its assets to generate revenue. Analyzing the activity ratios of A10 Networks Inc over the past five years reveals the following trends:
1. Inventory Turnover: A10 Networks Inc's inventory turnover has shown some fluctuations over the years, ranging from 2.04 to 2.89. A lower ratio may indicate slower-moving inventory or potential inefficiencies in inventory management. The company should monitor and optimize its inventory levels to improve this ratio.
2. Receivables Turnover: The receivables turnover ratio indicates how quickly the company collects outstanding receivables. A10 Networks Inc's ratio has been relatively stable, ranging from 3.39 to 4.42. A higher ratio suggests that the company is efficiently collecting payments from customers, which is a positive indicator of liquidity and effective credit management.
3. Payables Turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. A10 Networks Inc's ratio has fluctuated over the years, with a range of 6.44 to 10.34. A lower ratio may signify that the company is taking longer to pay its bills, which could have implications for supplier relationships and working capital management.
4. Working Capital Turnover: This ratio measures how effectively the company utilizes its working capital to generate revenue. A10 Networks Inc's working capital turnover has displayed some variation, ranging from 1.49 to 2.02. A higher ratio indicates that the company is efficiently utilizing its working capital to generate sales, while a lower ratio may suggest inefficiencies in capital utilization.
Overall, A10 Networks Inc should continue to monitor and improve its activity ratios to ensure optimal management of its assets, efficient operations, and sustainable growth.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 53.38 | 42.57 | 50.15 | 50.07 | 48.26 |
| Days of sales outstanding (DSO) | days | 107.76 | 94.95 | 90.21 | 82.62 | 92.05 |
| Number of days of payables | days | 15.94 | 14.54 | 15.30 | 11.72 | 16.37 |
Activity ratios are important indicators of how efficiently a company manages its assets and liabilities. Let's analyze the activity ratios of A10 Networks Inc based on the provided data:
1. Days of Inventory on Hand (DOH):
- The trend of Days of Inventory on Hand (DOH) for A10 Networks Inc has been fluctuating over the past five years.
- In 2023, the company had 179.01 days of inventory on hand, indicating that it takes approximately 179 days for the company to sell its inventory.
- The increase in DOH from 2022 to 2023 suggests that A10 Networks may be facing challenges in managing its inventory efficiently, possibly leading to higher holding costs or potential obsolescence of inventory.
2. Days of Sales Outstanding (DSO):
- A10 Networks Inc has shown a varying trend in Days of Sales Outstanding (DSO) over the last five years.
- In 2023, the company had a DSO of 107.76 days, indicating that it takes approximately 108 days for A10 Networks to collect its accounts receivable.
- The increase in DSO from 2022 to 2023 may suggest that the company is facing difficulties in collecting receivables promptly, which could impact its cash flows and working capital management.
3. Number of Days of Payables:
- The Days of Payables for A10 Networks Inc have also shown fluctuations over the five-year period.
- In 2023, the company had 53.45 days of payables, indicating that it takes approximately 53 days for A10 Networks to pay its suppliers.
- The increase in the number of days of payables from 2022 to 2023 could suggest that the company is taking longer to settle its payables, which may impact relationships with suppliers or cash flow management.
Overall, A10 Networks Inc's activity ratios reflect varying levels of efficiency in managing inventory, receivables, and payables. The company may need to focus on optimizing its inventory levels, improving receivables collection processes, and managing payables effectively to enhance its overall working capital management and operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 8.42 | 14.20 | 23.39 | 28.59 | 27.74 |
| Total asset turnover | 0.65 | 0.76 | 0.64 | 0.78 | 0.77 |
The fixed asset turnover ratio measures how efficiently a company is generating sales from its fixed assets. A higher ratio indicates better utilization of fixed assets. In the case of A10 Networks Inc, the fixed asset turnover has fluctuated over the past five years, decreasing from 27.77 in 2019 to 8.42 in 2023. This downward trend may indicate a decrease in the company's efficiency in generating sales from its fixed assets.
On the other hand, the total asset turnover ratio measures the efficiency of a company in generating sales from all its assets. A higher total asset turnover ratio signifies better asset utilization. A10 Networks Inc's total asset turnover ratio has also shown variability over the same period, ranging from 0.64 in 2021 to 0.78 in 2020 and 2019.
Overall, the long-term activity ratios of A10 Networks Inc suggest fluctuations in asset turnover efficiency over the years, with the company experiencing some challenges in optimizing its fixed assets for revenue generation. Further analysis and investigation into the factors affecting these ratios may be necessary to identify opportunities for improvement in asset utilization and operational efficiency.