A10 Network (ATEN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 43,968 | 38,648 | 53,079 | 31,642 | 19,140 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 231,829 | 207,876 | 181,012 | 208,888 | 115,974 |
| Return on total capital | 18.97% | 18.59% | 29.32% | 15.15% | 16.50% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $43,968K ÷ ($—K + $231,829K)
= 18.97%
To analyze A10 Network's return on total capital over the years from 2020 to 2024, we observe a fluctuation in the ratio:
- In December 2020, the return on total capital was 16.50%.
- By December 2021, the ratio decreased to 15.15%.
- However, there was a significant improvement in December 2022, with the return on total capital surging to 29.32%.
- The ratio dipped slightly to 18.59% in December 2023 and increased again to 18.97% by December 2024.
This fluctuation may indicate variations in the company's ability to generate profits relative to its total capital employed over the years. Further analysis of the company's financial performance and capital structure is warranted to understand the factors contributing to these fluctuations and to assess the company's overall financial health and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2024