A10 Network (ATEN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	251,700	280,338	250,042	225,526	212,391
Total current assets	US$ in thousands	271,824	256,991	284,019	242,303	220,939
Total current liabilities	US$ in thousands	111,069	118,248	116,085	107,780	97,581
Working capital turnover		1.57	2.02	1.49	1.68	1.72

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $251,700K ÷ ($271,824K – $111,069K)
= 1.57

The working capital turnover ratio for A10 Networks Inc has displayed fluctuations over the past five years. In 2023, the working capital turnover was 1.57, representing a decrease from the previous year's ratio of 2.02. This decline indicates that the company generated $1.57 in sales for every dollar invested in working capital during the year.

Comparing to the ratios in 2021 and 2020, where the ratios were 1.49 and 1.68 respectively, it appears that the efficiency of utilizing working capital improved in 2023. However, the ratio was still lower than the figure of 1.72 in 2019, suggesting a potential optimization opportunity in managing working capital for future periods.

Overall, the trend in the working capital turnover ratio for A10 Networks Inc reflects variability in the company's ability to efficiently convert working capital into sales revenue, indicating the need for continuous monitoring and potential adjustments in working capital management strategies.