A10 Network (ATEN)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 3.52 3.94 4.57 3.39 4.44 3.98 4.13 3.85 3.72 3.92 5.22 4.05 5.17 4.65 4.40 4.42 5.21 4.78 5.04 3.97
Payables turnover 13.31 21.78 32.36 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
Working capital turnover 1.47 1.63 1.56 1.57 1.71 1.84 1.95 2.02 2.37 1.79 1.80 1.49 1.47 1.58 1.55 1.68 1.61 1.73 1.69 1.72

Based on the provided data, we can analyze the activity ratios of A10 Network as follows:

1. Inventory Turnover:
- The inventory turnover ratio for A10 Network has shown a positive trend over the years, indicating that the company is efficiently managing its inventory. The ratio has increased from 5.66 on December 31, 2019, to 7.58 on December 31, 2024, with some fluctuations in between.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently the company is collecting its receivables. A10 Network's receivables turnover ratio fluctuated over the years but remained relatively stable, ranging from 3.39 on December 31, 2023, to 5.22 on March 31, 2022.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers. A10 Network's payables turnover ratio varied significantly, from 13.31 on December 31, 2024, to 41.88 on September 30, 2021. This indicates varying payment practices over the years.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. A10 Network's working capital turnover ratio showed fluctuations but generally improved over time, with values ranging from 1.47 on December 31, 2024, to 2.37 on September 30, 2022, suggesting better utilization of working capital.

In conclusion, A10 Network has shown improvements in its activity ratios, such as inventory turnover and working capital turnover, indicating effective management of resources. However, there have been fluctuations in receivables turnover and payables turnover, suggesting varying efficiency in managing receivables and payables over the years.

Average number of days

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
Days of inventory on hand (DOH) days 48.13 52.02 55.62 52.41 52.17 44.96 44.58 42.57 45.63 47.12 45.23 50.12 44.50 45.61 47.75 49.48 71.18 69.69 62.17 64.51
Days of sales outstanding (DSO) days 103.56 92.74 79.90 107.76 82.19 91.72 88.31 94.92 98.10 93.06 69.89 90.21 70.56 78.58 82.87 82.62 70.00 76.36 72.42 92.05
Number of days of payables days 27.43 16.76 11.28 15.65 18.19 14.08 12.91 14.54 12.96 11.96 10.84 15.29 8.72 13.53 11.04 11.58 22.96 21.54 11.79 21.88

Based on the provided data, A10 Network's activity ratios show the following trends:

1. Days of Inventory on Hand (DOH): A10 Network's DOH fluctuated over the period, ranging from a high of 71.18 days in September 2020 to a low of 42.57 days in December 2022. The company managed to lower its DOH over time, indicating improved efficiency in managing inventory levels.

2. Days of Sales Outstanding (DSO): A10 Network's DSO varied during the period, with the highest recorded at 107.76 days in December 2023 and the lowest at 69.89 days in March 2022. The company experienced fluctuations in collecting receivables, with a general trend towards lower DSO, reflecting potential improvements in the collection process.

3. Number of Days of Payables: A10 Network's payables days ranged from 8.72 days in September 2021 to 27.43 days in December 2024. The company extended its payables period in some quarters and shortened it in others, which may indicate changes in payment terms with suppliers or adjustments in working capital management.

Overall, A10 Network's activity ratios suggest a mix of inventory management, accounts receivable collection, and accounts payable practices to optimize working capital efficiency and operational performance.

Long-term

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
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
Total asset turnover 0.62 0.63 0.65 0.65 0.69 0.75 0.78 0.76 0.78 0.69 0.71 0.64 0.65 0.79 0.78 0.78 0.79 0.80 0.80 0.78

A10 Networks' long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, provide insights into the company's efficiency in utilizing its fixed and total assets respectively to generate sales.

1. Fixed Asset Turnover:
- A10 Network's Fixed Asset Turnover ratio has shown a declining trend from 27.74 in December 2019 to 6.91 in December 2024.
- This indicates that the company generated $6.91 in sales for every $1 invested in fixed assets at the end of 2024.
- The decrease in the Fixed Asset Turnover ratio over the years suggests a less efficient utilization of fixed assets, possibly due to slower revenue growth or over-investment in fixed assets.

2. Total Asset Turnover:
- A10 Network's Total Asset Turnover ratio fluctuated between 0.62 and 0.80 from December 2019 to December 2024.
- The ratio dropped to 0.62 by the end of 2024, indicating the company generated $0.62 in sales for every $1 invested in total assets.
- The declining trend in the Total Asset Turnover implies that A10 Networks may be experiencing challenges in generating revenue relative to its total asset base or may have an inefficient asset structure.

Overall, both the Fixed Asset Turnover and Total Asset Turnover ratios suggest that A10 Networks may need to focus on improving its asset utilization efficiency to enhance overall operational performance and profitability.