A10 Network (ATEN)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	261,696	251,700	280,338	250,042	225,526
Property, plant and equipment	US$ in thousands	39,142	29,876	19,743	10,692	7,888
Fixed asset turnover		6.69	8.42	14.20	23.39	28.59

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $261,696K ÷ $39,142K
= 6.69

The fixed asset turnover ratio for A10 Network has shown a declining trend over the years, starting at 28.59 in December 31, 2020, and decreasing to 6.69 by December 31, 2024. This indicates that the company's ability to generate sales from its fixed assets has been decreasing.

The significant drop in the fixed asset turnover ratio suggests that A10 Network may not be efficiently utilizing its fixed assets to generate revenue. This could potentially be a concern for investors and stakeholders as it may indicate inefficiencies in the company's operations or underutilization of its fixed assets.

Management should closely evaluate the utilization of fixed assets and consider optimizing their usage to improve the fixed asset turnover ratio and overall operational efficiency. Additionally, monitoring and comparing this ratio with industry benchmarks can provide valuable insights into the company's performance and competitiveness in the market.