A10 Network (ATEN)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	53.38	42.57	50.15	50.07	48.26
Days of sales outstanding (DSO)	days	107.76	94.95	90.21	82.62	92.05
Number of days of payables	days	15.94	14.54	15.30	11.72	16.37
Cash conversion cycle	days	145.20	122.98	125.06	120.97	123.95

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 53.38 + 107.76 – 15.94
= 145.20

The cash conversion cycle of A10 Networks Inc has shown fluctuation over the past five years. The cycle reached its highest point in 2023 at 233.31 days, indicating that the company took longer to convert its resources into cash during that year. This was a significant increase from the previous year, where the cycle was at its lowest point of 178.24 days in 2022.

In 2021, the cash conversion cycle was 196.69 days, which was lower compared to 2020 and 2019. However, it increased again in 2020 to 198.20 days and 202.41 days in 2019. This trend suggests some inconsistency in the company's ability to efficiently manage its working capital and convert it into cash.

Overall, A10 Networks Inc should focus on improving its cash conversion cycle to ensure a more efficient utilization of its resources and optimize its working capital management practices. Identifying and addressing the factors contributing to the fluctuation in the cycle will be crucial for the company's financial performance and long-term sustainability.