A10 Network (ATEN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.94% | 79.73% | 78.60% | 77.76% | 77.10% |
| Operating profit margin | 15.35% | 18.93% | 13.35% | 7.86% | -8.05% |
| Pretax margin | 17.40% | 18.80% | 12.65% | 8.49% | -7.73% |
| Net profit margin | 15.88% | 16.73% | 37.95% | 7.90% | -8.39% |
A10 Networks Inc's profitability ratios show a mixed performance over the past five years. The gross profit margin has generally improved, reaching 80.94% in 2023 from 77.01% in 2019, indicating the company has been effectively managing its cost of goods sold.
However, the operating profit margin witnessed fluctuations, peaking at 18.93% in 2022 but decreasing to 15.35% in 2023. This suggests that the company's operating expenses have not been efficiently controlled in recent years.
The pretax margin has also shown variability, with the highest being 18.80% in 2022 and the lowest recorded at -7.72% in 2019. The volatility in this ratio may indicate fluctuations in the company's income before taxes relative to its revenue.
The net profit margin has displayed significant fluctuations, from -8.38% in 2019 to 37.95% in 2021, before settling at 15.88% in 2023. The drastic change in 2021 suggests a one-time event or irregularity impacted the company's profitability significantly.
Overall, A10 Networks Inc's profitability ratios indicate a need for further analysis to understand the underlying reasons for the fluctuations and to identify areas for improvement in managing costs and enhancing overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.91% | 14.38% | 8.49% | 6.10% | -6.24% |
| Return on assets (ROA) | 10.25% | 12.71% | 24.14% | 6.13% | -6.50% |
| Return on total capital | 18.59% | 29.32% | 15.15% | 16.50% | -14.87% |
| Return on equity (ROE) | 19.23% | 25.91% | 45.42% | 15.36% | -16.38% |
A10 Networks Inc's profitability ratios provide insight into its ability to generate profits relative to its assets, capital, and equity over the past five years. The operating return on assets (Operating ROA) has shown fluctuation, from a negative figure in 2019 to a positive trend thereafter, reaching a peak of 14.38% in 2022 before slightly decreasing in 2023 to 9.91%. This ratio indicates how efficiently the company is utilizing its assets to generate operating profits.
The Return on Assets (ROA) has also shown variability, ranging from negative figures in 2019 to a high of 24.14% in 2021, before decreasing to 10.25% in 2023. This ratio reflects the company's overall profitability in relation to its total assets.
The Return on Total Capital has demonstrated an increasing trend over the years, from -13.39% in 2019 to 18.59% in 2023. This ratio shows the company's ability to generate returns on both equity and debt capital invested in the business.
Return on Equity (ROE) has displayed fluctuations, reaching a peak of 45.42% in 2021, reflecting a high return to the shareholders' equity. This ratio then decreased to 19.23% in 2023. ROE indicates how well the company is generating returns on the shareholders' investment.
Overall, A10 Networks Inc's profitability ratios exhibit positive trends in recent years, indicating improved efficiency in asset utilization and profitability. However, some fluctuations in ratios suggest a need for continuous monitoring to ensure sustained profitability and shareholder value creation.