A10 Network (ATEN)

A10 Network's liquidity ratios have shown a positive trend over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has consistently improved from 2.25 in 2020 to 2.49 in 2024. This indicates that the company has more than enough current assets to meet its short-term obligations.

Similarly, the quick ratio, which provides a more stringent assessment by excluding inventory from current assets, has also displayed an upward trajectory, rising from 1.94 in 2020 to 2.20 in 2024. This suggests that the company can settle its immediate liabilities without relying on the sale of inventory.

Furthermore, the cash ratio, which focuses solely on the most liquid assets, portrays A10 Network's ability to cover its current liabilities with its cash and cash equivalents. The company's cash ratio has improved consistently from 1.47 in 2020 to 1.58 in 2024, indicating a strengthening liquidity position and the ability to meet short-term obligations without relying on the sale of other current assets.

Overall, A10 Network's liquidity ratios demonstrate a healthy financial position with ample liquidity to meet its short-term obligations efficiently.

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Additional liquidity measure

The cash conversion cycle of A10 Network has shown some fluctuations over the past five years. As of December 31, 2020, the cash conversion cycle was at 120.97 days, indicating the company took approximately 121 days to convert its invested resources into cash.

By December 31, 2021, the cash conversion cycle extended slightly to 125.06 days, suggesting a longer period for the company to convert its investments into cash.

The trend continued to fluctuate, with the cash conversion cycle decreasing to 122.98 days by December 31, 2022. However, there was a significant increase in the cash conversion cycle to 145.20 days by December 31, 2023, indicating a longer time taken by A10 Network to convert its invested resources into cash.

The most recent data, as of December 31, 2024, shows a decrease in the cash conversion cycle to 128.43 days. Overall, the company should focus on managing its cash conversion cycle efficiently to optimize its working capital and liquidity position. A consistent and shorter cash conversion cycle can indicate effective management of accounts receivable, inventory, and accounts payable, ultimately improving the company's financial health.