A10 Network (ATEN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 50,140 | 39,970 | 46,908 | 94,887 | 17,816 |
| Total stockholders’ equity | US$ in thousands | 231,829 | 207,876 | 181,012 | 208,888 | 115,974 |
| ROE | 21.63% | 19.23% | 25.91% | 45.42% | 15.36% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $50,140K ÷ $231,829K
= 21.63%
The return on equity (ROE) is a key financial ratio that measures a company's profitability and efficiency in generating returns for its shareholders. Looking at the data provided for A10 Network, we can observe fluctuations in the ROE over the years.
As of December 31, 2020, the ROE was reported at 15.36%. This indicates that for every dollar of shareholders' equity, the company generated a return of 15.36% in that year.
By December 31, 2021, the ROE had significantly increased to 45.42%, reflecting a substantial improvement in the company's profitability and efficiency. This sharp rise suggests that A10 Network was able to leverage its equity effectively to generate higher returns for its shareholders.
In the subsequent years, the ROE experienced fluctuations. By December 31, 2022, the ROE decreased to 25.91%, indicating a slight decline in the company's ability to generate returns on equity compared to the previous year. However, by December 31, 2023, the ROE further decreased to 19.23%, signaling a continued decrease in profitability and efficiency.
As of December 31, 2024, the ROE improved slightly to 21.63%, showing a modest recovery in the company's return on equity compared to the previous year. Overall, the trend in ROE for A10 Network displays variability, with significant improvements in some years and declines in others.
Analyzing the ROE trend over these years can provide insights into A10 Network's performance in utilizing shareholders' equity to generate profits. Investors and stakeholders can use this information to assess the company's financial health and operational efficiency in creating value for its shareholders.
Peer comparison
Dec 31, 2024