A10 Network (ATEN)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	54,058	37,871	39,694	38,648	36,908	50,367	51,244	53,079	48,658	43,293	37,366	33,388	29,807	26,224	23,151	19,149	11,458	5,241	-4,536	-16,175
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	231,829	217,270	214,309	207,876	196,922	192,938	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
Return on total capital		23.32%	17.43%	18.52%	18.59%	18.74%	26.11%	27.62%	29.32%	30.27%	22.23%	20.09%	15.98%	14.64%	21.06%	18.57%	16.51%	9.41%	4.73%	-4.01%	-14.87%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $54,058K ÷ ($—K + $231,829K)
= 23.32%

A10 Network's return on total capital has shown fluctuations over the years. The ratio was negative in the initial periods of December 2019 and March 2020, indicating the company had not generated sufficient returns to cover its total capital investments.

However, the trend improved from June 2020 onwards, with a positive return on total capital. There was a steady increase in the ratio until March 2022, signifying the company's ability to generate higher returns relative to the total capital employed.

Although the ratio dipped slightly in September 2022, it rebounded strongly by December 2022, reaching a peak of 30.27%. This suggests that A10 Network was effectively utilizing its capital to generate profits during that period.

Following the peak, there was a gradual decline in the return on total capital until March 2024. However, the ratio remained relatively stable between 17.43% to 23.32%, indicating that the company continued to generate reasonable returns compared to its total capital investments.

Overall, A10 Network's return on total capital has shown volatility but has generally exhibited an upward trend, reflecting the company's efficiency in utilizing its capital to generate profits over the years.