A10 Network (ATEN)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	39,970	40,083	45,727	44,517	46,908	39,606	102,379	98,579	94,887	92,000	23,578	20,770	17,816	10,026	3,735	-5,844	-17,819	-19,478	-21,458	-20,219
Total stockholders’ equity	US$ in thousands	207,876	196,922	192,939	185,501	181,012	160,734	194,759	185,977	208,888	203,595	124,505	124,659	115,974	121,701	110,860	113,252	108,787	102,168	98,326	101,664
ROE		19.23%	20.35%	23.70%	24.00%	25.91%	24.64%	52.57%	53.01%	45.42%	45.19%	18.94%	16.66%	15.36%	8.24%	3.37%	-5.16%	-16.38%	-19.06%	-21.82%	-19.89%

December 31, 2023 calculation

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

To analyze A10 Networks Inc's return on equity (ROE) based on the provided historical data, we observe a fluctuating trend over the past eight quarters. The ROE figures ranged between 19.23% to 53.01% during this period.

Initially, in Q1 and Q2 of 2022, the company demonstrated exceptionally high ROE levels of 52.57% and 53.01%, indicating efficient utilization of shareholder equity to generate profits. However, this trend showed a significant decline in subsequent quarters, dropping to around 24% in the following quarters of 2022 and further decreasing to around 19-23% in 2023.

While a decreasing ROE can suggest a potential decline in the profitability of the company or a decrease in efficiency in generating profits relative to the shareholders' equity, it is important to note that a single ratio may not provide a complete assessment of the company's financial health. Other factors such as the company's overall financial performance, market conditions, and industry benchmarks should also be considered to gain a comprehensive understanding of A10 Networks Inc's financial position.

In conclusion, A10 Networks Inc's ROE has shown fluctuations over the past eight quarters, signifying varying levels of profitability and efficiency in leveraging shareholder equity. It would be essential to delve deeper into the company's financial statements and performance metrics to ascertain the underlying reasons for these fluctuations and assess the overall financial health of the organization.