A10 Network (ATEN)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	261,696	251,700	280,338	250,042	225,526
Total current assets	US$ in thousands	307,288	271,824	256,991	284,019	242,303
Total current liabilities	US$ in thousands	123,573	111,069	118,248	116,085	107,780
Working capital turnover		1.42	1.57	2.02	1.49	1.68

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $261,696K ÷ ($307,288K – $123,573K)
= 1.42

The working capital turnover for A10 Network has fluctuated over the years. In 2020, the working capital turnover was 1.68, indicating that the company generated $1.68 in revenue for every dollar of working capital invested. The ratio decreased to 1.49 in 2021, suggesting a potential inefficiency in utilizing its working capital.

However, in 2022, there was an improvement in the working capital turnover to 2.02, showing that the company generated $2.02 in revenue for each dollar of working capital. This may indicate a more effective management of working capital during that period.

Subsequently, in 2023, the working capital turnover decreased to 1.57, and further dropped to 1.42 in 2024. These declines suggest a potential decrease in efficiency in utilizing working capital to generate revenue in those years.

Overall, the trend in the working capital turnover ratio for A10 Network shows variability in the company's ability to efficiently generate revenue from its working capital over the years, with a notable improvement in 2022 but decreases in subsequent years.