A10 Network (ATEN)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	39,970	46,908	94,887	17,816	-17,819
Total stockholders’ equity	US$ in thousands	207,876	181,012	208,888	115,974	108,787
ROE		19.23%	25.91%	45.42%	15.36%	-16.38%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $39,970K ÷ $207,876K
= 19.23%

A10 Networks Inc's return on equity (ROE) has exhibited varying trends over the past five years. In 2023, the ROE was 19.23%, representing a decrease from the previous year's 25.91%. Despite this decline, the ROE remained positive, indicating that the company generated a profit relative to its shareholders' equity.

The ROE was notably higher in 2022 at 25.91%, suggesting a more efficient utilization of equity to generate profits compared to 2023. The year 2021 saw a substantial ROE of 45.42%, indicating strong profitability and efficient use of shareholder funds to generate returns.

Conversely, in 2020, the ROE dropped to 15.36%, signaling a decrease in profitability and efficiency in utilizing equity. The most significant deviation was in 2019, where A10 Networks Inc recorded a negative ROE of -16.38%, indicating that the company incurred a loss relative to its equity that year.

Overall, the fluctuating ROE figures suggest that A10 Networks Inc's performance in generating profits relative to shareholders' equity has been inconsistent. It is essential for the company to focus on maintaining a healthy and sustainable ROE to ensure long-term profitability and shareholder value.