A10 Network (ATEN)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	270,297	255,634	255,392	251,700	262,318	275,268	276,946	280,441	273,478	266,347	257,358	250,042	242,026	233,274	226,605	225,526	223,187	219,382	216,035	212,406
Property, plant and equipment	US$ in thousands	39,142	37,313	30,254	29,876	26,054	25,210	22,305	19,743	17,958	15,046	13,460	10,692	9,555	9,148	8,223	7,888	7,297	7,033	7,462	7,656
Fixed asset turnover		6.91	6.85	8.44	8.42	10.07	10.92	12.42	14.20	15.23	17.70	19.12	23.39	25.33	25.50	27.56	28.59	30.59	31.19	28.95	27.74

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $270,297K ÷ $39,142K
= 6.91

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investments in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets effectively to generate sales.

Analyzing the fixed asset turnover ratio of A10 Network over the past years, we observe a general declining trend. The ratio stood at a high of 31.19 as of June 30, 2020, but gradually decreased to 6.91 as of December 31, 2024. This downward trend indicates a potential decrease in the efficiency of A10 Network in utilizing its fixed assets to generate revenue over the period.

The sharp decline in the fixed asset turnover ratio from 27.56 as of March 31, 2021, to 10.07 as of September 30, 2023, followed by a slight increase to 8.44 as of March 31, 2024, and then a decrease to 6.91 as of December 31, 2024, raises concerns about the company's ability to efficiently generate sales from its fixed assets.

Overall, the decreasing trend in A10 Network's fixed asset turnover ratio signals a potential inefficiency in utilizing its fixed assets to generate revenue, which may require further investigation and strategic management to improve operational efficiency and enhance profitability.