A10 Network (ATEN)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	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	173,382	183,117	190,854
Inventory	US$ in thousands	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	21,081	22,522	20,952
Inventory turnover		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	8.22	8.13	9.11

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $163,823K ÷ $23,522K
= 6.96

The inventory turnover of A10 Networks Inc has shown fluctuating trends over the past eight quarters. It ranged from a low of 2.04 in Q4 2023 to a high of 2.89 in Q4 2022. Generally, it can be observed that the company's inventory turnover ratio has been relatively stable, hovering around the 2.5 range over the period.

A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently and quickly. A lower ratio may suggest slower sales or overstocking of inventory. In the case of A10 Networks Inc, the inventory turnover has been at a moderate level, which could imply an effective management of inventory levels to meet demand and avoid excessive holding costs.

It is important for the company to monitor its inventory turnover ratio regularly to ensure optimal inventory management, balancing the cost of holding inventory against the risk of stockouts. Analyzing the trend of inventory turnover can provide insights into the company's operational efficiency, sales performance, and supply chain management.