A10 Network (ATEN)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	166,890	164,321	163,363	163,823	164,844	165,929	166,938	168,862	170,308	169,856	168,122	163,577	157,243	152,737	149,411	152,931	115,896	116,053	121,914	126,647
Inventory	US$ in thousands	22,005	23,417	24,895	23,522	23,561	20,438	20,391	19,693	21,289	21,926	20,832	22,462	19,169	19,084	19,547	20,730	22,600	22,159	20,764	22,384
Inventory turnover		7.58	7.02	6.56	6.96	7.00	8.12	8.19	8.57	8.00	7.75	8.07	7.28	8.20	8.00	7.64	7.38	5.13	5.24	5.87	5.66

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $166,890K ÷ $22,005K
= 7.58

A10 Network's inventory turnover has shown a generally increasing trend over the years from December 2019 to December 2024. The inventory turnover increased from 5.66 in December 2019 to 7.58 in December 2024. This suggests that A10 Network is efficiently managing its inventory and selling its products more frequently. A higher inventory turnover indicates that the company is effectively utilizing its inventory to generate sales.

There were fluctuations in the inventory turnover ratio within the period, with some quarters showing higher turnover rates than others. For instance, the inventory turnover ratio reached a peak of 8.57 in December 2022, indicating a rapid turnover of inventory during that period. However, there were slight decreases in the turnover ratio in some quarters, such as in September 2023 where the ratio dropped to 7.00.

Overall, the increasing trend in A10 Network's inventory turnover is a positive sign of operational efficiency and effective inventory management. It shows the company's ability to quickly convert its inventory into sales, which can lead to improved cash flows and profitability.