A10 Network (ATEN)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 58,099 | 43,795 | 52,716 | 31,642 | 19,139 |
| Revenue | US$ in thousands | 261,696 | 251,700 | 280,338 | 250,042 | 225,526 |
| Pretax margin | 22.20% | 17.40% | 18.80% | 12.65% | 8.49% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $58,099K ÷ $261,696K
= 22.20%
The pretax margin of A10 Networks has shown a gradual increase over the past five years, reflecting improving profitability before taxes. As of December 31, 2020, the company's pretax margin stood at 8.49%, indicating that for every dollar of revenue generated, 8.49 cents were retained as pre-tax profit. The margin then increased to 12.65% by December 31, 2021, reflecting a positive trend in the company's operational efficiency.
Subsequently, there was a significant jump in the pretax margin to 18.80% by December 31, 2022, suggesting enhanced cost management or revenue growth strategies. However, by December 31, 2023, the pretax margin decreased slightly to 17.40%, potentially indicating changes in business operations or economic conditions impacting profitability.
Most recently, by December 31, 2024, A10 Network's pretax margin reached 22.20%, indicating a robust level of profitability before taxes. Overall, the company has shown a positive trend in its pretax margin, demonstrating efficient cost control and revenue generation capabilities, which are crucial for sustainable financial performance.
Peer comparison
Dec 31, 2024