A10 Network (ATEN)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	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	4.71	4.90	5.20
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
Working capital turnover	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	1.82	1.96	2.13

A10 Networks Inc's activity ratios provide insight into how efficiently the company is managing its assets and liabilities.

1. Inventory turnover:
- A10 Networks Inc's inventory turnover ratio has been relatively stable over the past eight quarters, ranging from 2.04 to 2.89. This indicates that the company is effectively managing its inventory levels, with a moderate rate of inventory turnover.

2. Receivables turnover:
- The receivables turnover ratio has shown some fluctuations, with values ranging from 3.39 to 5.23. A higher ratio suggests that the company is efficient in collecting payment from customers, although the variability in this ratio raises some questions about the effectiveness of the company's credit policies.

3. Payables turnover:
- A10 Networks Inc's payables turnover ratio has also varied, ranging from 6.14 to 10.78. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, possibly to improve its cash flow position. However, consistently high values could potentially strain relationships with suppliers.

4. Working capital turnover:
- The working capital turnover ratio shows the efficiency of the company in generating revenue relative to its working capital. A decreasing trend in this ratio over the quarters could indicate that the company is becoming less efficient in utilizing its working capital to generate sales.

In conclusion, A10 Networks Inc should continue to monitor and analyze its activity ratios to ensure efficient management of its assets and liabilities. A stable and balanced approach to inventory, receivables, payables, and working capital turnover ratios is crucial for sustainable growth and profitability.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	44.38	44.89	40.07
Days of sales outstanding (DSO)	days	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	77.46	74.54	70.15
Number of days of payables	days	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	11.55	15.45	15.56

Analyzing the activity ratios of A10 Networks Inc over the past quarters reveals some interesting trends.

Days of inventory on hand (DOH) has been gradually increasing from Q1 2023 to Q4 2023, indicating that the company is holding onto its inventory for longer periods. This may suggest potential inefficiencies in managing inventory levels or a slowdown in sales turnover.

Days of sales outstanding (DSO) experienced fluctuations across the quarters, but overall, there seems to be an increasing trend from Q1 2022 to Q4 2023. This might signify that the company is taking longer to collect payments from its customers, which could potentially lead to cash flow challenges.

On the other hand, the number of days of payables has been relatively stable or slightly decreasing over the quarters. This indicates that the company is managing its payables efficiently and possibly taking advantage of favorable payment terms with its suppliers.

Overall, the analysis of A10 Networks Inc's activity ratios suggests potential concerns regarding inventory management and accounts receivable collection efficiency, which could impact the company's working capital and cash flow in the long run. A closer examination of the underlying factors contributing to these trends would be beneficial for assessing the company's operational performance and financial health.

Long-term

	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
Fixed asset turnover	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	24.18	29.91	30.37
Total asset turnover	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	0.93	0.98	1.00

The fixed asset turnover ratio for A10 Networks Inc has been consistently decreasing over the past eight quarters, indicating a declining efficiency in generating revenue from its fixed assets. This trend may suggest that the company is not effectively utilizing its long-term assets to generate sales.

On the other hand, the total asset turnover ratio has also shown a downward trend, albeit with some fluctuations. This implies that the company's overall efficiency in generating sales from all assets, both fixed and current, has been decreasing. A decreasing total asset turnover ratio could indicate inefficiencies in the company's operations and management of its resources.

Overall, A10 Networks Inc's long-term activity ratios reflect a declining trend in asset utilization efficiency, which may raise concerns about the company's operational performance and management of its long-term assets. Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance in utilizing its assets effectively.