A10 Networks, Inc. (NYSE:ATEN) Capital Efficiency Analysis
A10 Networks, Inc. (NYSE:ATEN) is a company that specializes in providing secure application services and solutions. It offers products that help organizations ensure their applications are secure, available, and efficient. A10 Networks operates in a competitive landscape with peers like Ribbon Communications, Rapid7, Calix, Alpha and Omega Semiconductor, and Qualys.
A10 Networks has a Return on Invested Capital (ROIC) of 12.08% and a Weighted Average Cost of Capital (WACC) of 10.02%. This results in a ROIC to WACC ratio of 1.21, indicating that the company is generating returns above its cost of capital. This is a positive indicator for investors, as it suggests efficient capital utilization.
In comparison, Ribbon Communications has a ROIC of 3.03% and a WACC of 13.28%, resulting in a ROIC to WACC ratio of 0.23. This suggests that Ribbon Communications is not generating sufficient returns to cover its cost of capital, which may be a concern for investors.
Rapid7, with a ROIC of 2.42% and a WACC of 6.77%, has a ROIC to WACC ratio of 0.36. Although better than Ribbon Communications, Rapid7 still falls short of generating returns that exceed its cost of capital, indicating room for improvement in capital efficiency.
Qualys stands out with a ROIC of 27.99% and a WACC of 6.69%, resulting in a ROIC to WACC ratio of 4.18. This indicates that Qualys is highly efficient in utilizing its capital to generate returns, making it the most efficient among the peers analyzed.
| Symbol | Price | %chg |
|---|---|---|
| 4338.HK | 1600 | 0 |
| CYBR.JK | 955 | 0 |
| 377300.KS | 29800 | 0 |
| MSFT.NE | 28.46 | 0 |
A10 Networks, Inc. (NYSE:ATEN) Competes in the Technology Sector with Strong ROIC
- A10 Networks, Inc. (NYSE:ATEN) boasts a Return on Invested Capital (ROIC) of 12.08% and a Weighted Average Cost of Capital (WACC) of 9.81%, indicating efficient capital use.
- Ribbon Communications, Rapid7, and Calix show lower ROIC to WACC ratios, suggesting they are not generating returns above their cost of capital.
- Qualys, Inc. stands out with a ROIC of 27.99% and a WACC of 6.72%, making it an attractive option for investors seeking high growth potential.
A10 Networks, Inc. (NYSE:ATEN) is a company that provides secure application services and solutions. It focuses on delivering high-performance application delivery controllers, advanced threat protection, and cloud-native solutions. A10 Networks competes with companies like Ribbon Communications, Rapid7, Calix, Alpha and Omega Semiconductor, and Qualys in the technology sector.
A10 Networks has a Return on Invested Capital (ROIC) of 12.08% and a Weighted Average Cost of Capital (WACC) of 9.81%. This results in a ROIC to WACC ratio of 1.23, indicating that the company is generating returns above its cost of capital. This is a positive indicator for investors, as it suggests efficient capital use.
In comparison, Ribbon Communications has a ROIC of 2.93% and a WACC of 8.99%, resulting in a ROIC to WACC ratio of 0.33. This lower ratio suggests that Ribbon Communications is not generating returns that exceed its cost of capital, which may be less attractive to investors.
Rapid7 and Calix also show lower ROIC to WACC ratios of 0.30 and -0.41, respectively. Rapid7's ROIC is 2.42% against a WACC of 8.11%, while Calix has a negative ROIC of -4.98% with a WACC of 12.09%. These figures indicate that both companies are struggling to generate returns above their cost of capital.
Qualys, Inc. stands out with a ROIC of 27.99% and a WACC of 6.72%, resulting in a ROIC to WACC ratio of 4.16. This high ratio suggests that Qualys is efficiently using its capital to generate significant returns, making it an attractive option for investors seeking high growth potential.
