A10 Network (ATEN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	160,823	168,861	163,477	151,131	169,298
Inventory	US$ in thousands	23,522	19,693	22,462	20,730	22,384
Inventory turnover		6.84	8.57	7.28	7.29	7.56

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $160,823K ÷ $23,522K
= 6.84

The inventory turnover ratio for A10 Networks Inc has shown fluctuations over the past five years. In 2023, the inventory turnover was 2.04, indicating that the company's inventory was turned over approximately 2.04 times during the year. This represents a decrease from the previous year, where the ratio was 2.89.

A lower inventory turnover ratio can suggest inefficiencies in managing inventory or potential overstocking, leading to a longer time to sell inventory. However, it is important to consider industry norms and the nature of A10 Networks' business when interpreting this ratio.

Overall, the trend in inventory turnover for A10 Networks Inc appears varied, with fluctuations in the ratio over the years. Further analysis and comparison with industry benchmarks may provide additional insights into the company's inventory management efficiency.