A10 Network (ATEN)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		3.39	4.44	3.98	4.13	3.85	3.72	3.92	5.22	4.05	5.17	4.65	4.40	4.42	5.21	4.78	5.04	3.97	4.71	4.90	5.20
DSO	days	107.76	82.19	91.72	88.31	94.92	98.10	93.06	69.89	90.21	70.56	78.58	82.87	82.62	70.00	76.36	72.42	92.05	77.46	74.54	70.15

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.39
= 107.76

To analyze A10 Networks Inc's Days Sales Outstanding (DSO) trend, we observe fluctuations over the past eight quarters. DSO represents the average number of days it takes for a company to collect revenue after a sale is made. A higher DSO may indicate inefficiencies in the collection process and potential cash flow issues.

In Q1 2022, the DSO was at its lowest at 69.76 days, indicating efficient collection of sales. However, there was a noticeable increase in DSO in Q4 2022, reaching 94.95 days, which continued to climb in the subsequent quarters. Q4 2023 saw the highest DSO at 107.76 days.

The increasing trend in DSO from Q4 2022 to Q4 2023 suggests that A10 Networks Inc may be experiencing challenges in collecting payments from customers promptly. Management should closely monitor and assess the reasons behind the extended collection periods to address any underlying issues that could impact the company's cash flow and overall financial health.