A10 Network (ATEN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		7.31	6.84	8.57	7.28	7.29
DOH	days	49.92	53.38	42.57	50.15	50.07

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.31
= 49.92

To analyze A10 Network's days of inventory on hand (DOH) over the past five years, we observe the following trends:

1. In December 31, 2020, the DOH was 50.07 days, indicating that the company held inventory for approximately 50 days on average before selling it.

2. The following year, on December 31, 2021, the DOH increased slightly to 50.15 days, suggesting a similar inventory holding period compared to the previous year.

3. By December 31, 2022, the DOH decreased to 42.57 days, indicating that the company managed its inventory more efficiently and reduced the time it held inventory before selling it.

4. However, there was an increase in the DOH to 53.38 days by December 31, 2023, which may indicate potential issues such as overstocking or slow inventory turnover.

5. In the most recent year, December 31, 2024, the DOH decreased slightly to 49.92 days, showing some improvement in managing inventory levels compared to the previous year.

Overall, fluctuations in the DOH over the past five years suggest varying efficiency in managing inventory levels. It is important for A10 Network to strike a balance in maintaining optimal inventory levels to meet customer demand while avoiding excess holding costs. Further analysis and comparison with industry benchmarks may provide insights into the company's inventory management effectiveness.