A10 Network (ATEN)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	48.13	52.02	55.62	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
Days of sales outstanding (DSO)	days	103.56	92.74	79.90	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
Number of days of payables	days	27.43	16.76	11.28	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
Cash conversion cycle	days	124.25	127.99	124.24	144.51	116.17	122.60	119.98	122.95	130.77	128.21	104.28	125.04	106.33	110.65	119.58	120.52	118.22	124.51	122.80	134.68

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 48.13 + 103.56 – 27.43
= 124.25

The cash conversion cycle for A10 Network fluctuated over the period under consideration. The cycle started at 134.68 days as of December 31, 2019, indicating the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

There was a downward trend in the cycle towards the middle of the observation period, reaching its lowest point of 106.33 days as of September 30, 2021, suggesting an improvement in the efficiency of A10 Network's working capital management.

However, the cycle started to increase again towards the latter part of the data set, with the highest value of 144.51 days recorded as of December 31, 2023. This increase may indicate potential challenges in managing inventory, receivables, and payables effectively, which could impact the company's liquidity and cash flow position.

Overall, the fluctuations in the cash conversion cycle for A10 Network demonstrate the importance of monitoring and managing working capital efficiently to ensure optimal cash flow management and financial performance.