A10 Network (ATEN)

Working capital 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
Revenue (ttm)	US$ in thousands	251,700	262,318	275,268	276,946	280,441	273,478	266,347	257,358	250,042	242,026	233,274	226,605	225,526	223,187	219,382	216,035	212,406	213,915	221,580	233,109
Total current assets	US$ in thousands	271,824	264,631	256,465	244,993	256,991	237,585	271,665	252,233	284,019	267,320	250,635	244,975	242,303	235,322	222,786	219,050	220,939	203,579	201,815	205,618
Total current liabilities	US$ in thousands	111,069	111,331	107,078	103,045	118,248	122,279	122,459	109,332	116,085	103,224	103,342	99,018	107,780	96,777	96,258	90,898	97,581	85,826	88,529	96,100
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

December 31, 2023 calculation

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

The working capital turnover for A10 Networks Inc has shown fluctuations over the past eight quarters, ranging from a low of 1.57 in Q4 2023 to a high of 2.37 in Q3 2022. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.

A decreasing trend in the working capital turnover ratio can suggest inefficiencies in managing working capital, such as excess inventory or slow collections from customers. Conversely, an increasing trend indicates that the company is able to generate more sales revenue from its working capital, which can be a positive sign of operational efficiency.

In this case, the decreasing trend in the working capital turnover ratio from Q3 2022 to Q4 2023 may indicate potential issues with the company's working capital management. It is important for A10 Networks Inc to closely monitor this ratio and consider implementing strategies to improve working capital efficiency to support sustainable growth and profitability.