A10 Network (ATEN)

Payables 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
Payables	US$ in thousands	7,024	8,214	6,399	5,906	6,725	6,045	5,567	4,994	6,852	3,755	5,661	4,521	4,851	7,289	6,850	3,937	7,592	5,488	7,749	8,136
Payables turnover		23.32	20.07	25.93	28.27	25.11	28.17	30.51	33.66	23.87	41.88	26.98	33.05	31.53	15.90	16.94	30.97	16.68	31.59	23.63	23.46

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $163,823K ÷ $7,024K
= 23.32

Payables turnover is a financial ratio that measures how efficiently a company is managing its accounts payable by determining how many times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which can be a positive sign of efficient cash management.

In the case of A10 Networks Inc, the payables turnover ratios for the past eight quarters have ranged from 6.14 to 10.78. The highest payables turnover was observed in Q1 2022 at 10.78, while the lowest was in Q3 2023 at 6.14. This suggests that A10 Networks Inc has been consistently managing its accounts payable effectively over the analyzed period.

The fluctuations in the payables turnover ratio may indicate changes in the company's payment terms with suppliers, cash flow management, or procurement practices. For instance, a lower payables turnover ratio like in Q3 2023 may suggest that A10 Networks Inc took longer to pay its suppliers during that quarter compared to other periods.

It is essential for investors and stakeholders to monitor the payables turnover ratio over time to assess the company's liquidity, working capital management, and relationships with suppliers. Overall, a consistently high payables turnover ratio can reflect positively on A10 Networks Inc's operational efficiency and financial health.