A10 Network (ATEN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 38,648 | 53,079 | 31,642 | 19,140 | -16,175 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 207,876 | 181,012 | 208,888 | 115,974 | 108,787 |
| Return on total capital | 18.59% | 29.32% | 15.15% | 16.50% | -14.87% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $38,648K ÷ ($—K + $207,876K)
= 18.59%
A10 Networks Inc's return on total capital has exhibited fluctuations over the past five years. The company experienced a significant improvement in its return on total capital from -13.39% in 2019 to 29.32% in 2022, indicating a substantial turnaround in performance. However, there was a slight decline in the metric to 18.59% in 2023, reflecting a potential challenge in maintaining the heightened profitability levels seen in the previous year. Overall, A10 Networks Inc has demonstrated variable success in generating returns on its total capital investment, with the need to focus on sustaining and potentially increasing profitability levels over time.
Peer comparison
Dec 31, 2023