A10 Network (ATEN)

Liquidity ratios

	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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Current ratio	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	2.37	2.28	2.14
Quick ratio	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	1.96	1.86	1.74
Cash ratio	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	1.43	1.35	1.28

A10 Networks Inc's liquidity ratios show a consistent trend of improvement over the past eight quarters. The current ratio, which measures the company's ability to pay its short-term obligations with current assets, has increased steadily from 2.17 in Q4 2022 to 2.45 in Q4 2023. This indicates that the company has increased its short-term liquidity and is in a strong position to meet its current liabilities.

Similarly, the quick ratio, also known as the acid-test ratio, has also shown improvement over the same period. The ratio has increased from 2.01 in Q4 2022 to 2.24 in Q4 2023, reflecting an increase in the company's ability to cover its immediate liabilities with its most liquid assets.

The cash ratio, which is the most conservative measure of liquidity, has also demonstrated a positive trend, increasing from 1.39 in Q4 2022 to 1.57 in Q4 2023. This indicates that A10 Networks Inc has been able to bolster its ability to meet its short-term obligations solely with its cash and cash equivalents.

Overall, A10 Networks Inc's liquidity ratios have shown a consistent improvement, reflecting a strengthening liquidity position and the company's ability to meet its short-term obligations effectively.

Additional liquidity measure

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash conversion cycle	days	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	110.29	103.99	94.66

The cash conversion cycle of A10 Networks Inc has exhibited fluctuations over the past eight quarters. In Q1 2022, the company had a relatively low cash conversion cycle of 177.12 days, indicating a shorter time taken to convert investments in inventory and other resources into cash inflows from sales. This efficiency improved further in Q4 2022, with a cycle of 178.24 days.

However, a notable increase in the cash conversion cycle was observed in Q4 2023, reaching 233.31 days, reflecting a prolonged duration to convert investments into cash. This marks a significant deviation from the trend of improvement in efficiency seen in the previous quarters.

Overall, variations in the cash conversion cycle suggest fluctuations in the company's management of inventory, accounts receivable, and accounts payable. It is essential for A10 Networks Inc to analyze the underlying factors contributing to these changes in order to optimize working capital management and enhance overall financial performance.