A10 Network (ATEN)

Liquidity ratios

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
Current ratio 2.49 2.23 2.45 2.45 2.38 2.40 2.38 2.17 1.94 2.22 2.31 2.45 2.59 2.43 2.47 2.25 2.43 2.31 2.41 2.26
Quick ratio 2.20 1.98 2.13 2.15 2.05 2.08 2.05 1.89 1.65 1.92 1.96 2.13 2.27 2.10 2.15 1.94 2.09 1.97 2.04 1.88
Cash ratio 1.58 1.47 1.64 1.49 1.52 1.44 1.40 1.28 1.04 1.36 1.51 1.59 1.82 1.61 1.63 1.47 1.64 1.49 1.57 1.33

A10 Network has maintained a relatively stable current ratio over the past few years, with the ratio fluctuating between 1.94 and 2.59. The current ratio indicates the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 suggests that the company has more than enough current assets to cover its current liabilities.

Similarly, the quick ratio, which excludes inventory from current assets, has also shown relatively stable performance, ranging from 1.65 to 2.27. The quick ratio provides a more conservative measure of liquidity compared to the current ratio.

The cash ratio of A10 Network has shown a decreasing trend over the years, with values falling from 1.04 to 1.82. This ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents alone. A declining cash ratio may indicate potential challenges in meeting short-term obligations solely with cash reserves.

Overall, A10 Network's liquidity ratios suggest that the company has maintained a healthy liquidity position, with sufficient current assets to cover short-term liabilities. However, the decreasing trend in the cash ratio warrants monitoring to ensure the company can meet its obligations with readily available cash resources.

Additional liquidity measure

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
Cash conversion cycle days 124.25 127.99 124.24 144.51 116.17 122.60 119.98 122.95 130.77 128.21 104.28 125.04 106.33 110.65 119.58 120.52 118.22 124.51 122.80 134.68

The cash conversion cycle for A10 Network has exhibited some fluctuations over the years, reflecting the company's efficiency in managing its working capital. The cycle measures the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales.

From December 31, 2019, to December 31, 2024, the cash conversion cycle ranged from a high of 144.51 days to a low of 104.28 days. Generally, a shorter cash conversion cycle indicates that a company is able to efficiently manage its working capital and convert its assets into cash more quickly.

During the period under review, the company managed to reduce its cash conversion cycle from 134.68 days at the end of 2019 to 124.25 days at the end of 2024. This indicates an improvement in the company's ability to more quickly convert its investments in inventory and accounts receivable into cash inflows from sales.

However, there were fluctuations in the cash conversion cycle throughout the analyzed period, suggesting potential challenges in working capital management or changes in the company's operating efficiency.

Overall, the cash conversion cycle provides insights into A10 Network's operational efficiency and effectiveness in managing its working capital and cash flow. It is important for the company to continue monitoring and optimizing this metric to ensure healthy liquidity and financial stability.