A10 Network (ATEN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.35% | 80.94% | 79.73% | 78.60% | 77.76% |
| Operating profit margin | 16.80% | 15.35% | 18.93% | 13.35% | 7.86% |
| Pretax margin | 22.20% | 17.40% | 18.80% | 12.65% | 8.49% |
| Net profit margin | 19.16% | 15.88% | 16.73% | 37.95% | 7.90% |
A10 Network has demonstrated a consistent improvement in its gross profit margin over the past five years, starting at 77.76% in December 2020 and steadily increasing to 80.35% by December 2024. This upward trend indicates efficient management of production costs and pricing strategies.
The operating profit margin showed fluctuations during the period, with a notable increase from 7.86% in December 2020 to 18.93% in December 2022, before slightly declining to 16.80% by December 2024. Despite the fluctuations, the company managed to achieve significant profitability at the operational level.
The pretax margin also exhibited a positive trend, rising from 8.49% in December 2020 to 22.20% in December 2024. This indicates effective cost management and revenue generation strategies implemented by A10 Network.
Furthermore, the net profit margin experienced a substantial surge from 7.90% in December 2020 to 37.95% in December 2021, before stabilizing around the range of 15-19% in the subsequent years. This suggests the company's ability to efficiently convert revenue into net income, reflecting profitability growth.
Overall, A10 Network has shown commendable profitability performance over the analyzed period, with improving gross profit margins, stable operating margins, and increasing net profit margins, indicating effective cost control, pricing strategies, and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.16% | 9.91% | 14.38% | 8.49% | 6.10% |
| Return on assets (ROA) | 11.58% | 10.25% | 12.71% | 24.14% | 6.13% |
| Return on total capital | 18.97% | 18.59% | 29.32% | 15.15% | 16.50% |
| Return on equity (ROE) | 21.63% | 19.23% | 25.91% | 45.42% | 15.36% |
A10 Network's profitability ratios show positive trends over the past five years, indicating improving efficiency in generating profits from its assets and capital.
- Operating return on assets (Operating ROA) increased from 6.10% in 2020 to 10.16% in 2024, reaching a peak of 14.38% in 2022. This metric reflects the company's ability to generate operating profits relative to total assets.
- Return on assets (ROA) varied over the period, with a significant spike to 24.14% in 2021 before stabilizing around 10-12% levels in subsequent years. ROA measures overall profitability by comparing net income to total assets.
- Return on total capital saw a notable upsurge from 16.50% in 2020 to 29.32% in 2022, indicating an enhancement in utilizing both equity and debt to generate profits. The ratio remained relatively consistent around 18-19% in the later years.
- Return on equity (ROE) exhibited a similar pattern to ROA, with a sharp increase to 45.42% in 2021 followed by a gradual decline to 21.63% in 2024. ROE demonstrates the return earned on shareholder equity, reflecting A10 Network's ability to leverage equity capital efficiently.
Overall, A10 Network's profitability ratios suggest a positive performance trajectory, with a focus on asset utilization, capital efficiency, and shareholder value creation.