A10 Network (ATEN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.87 | 1.88 | 2.04 | 1.88 | 2.51 |
Based on the data provided, A10 Network has consistently maintained a very healthy solvency position over the years.
1. Debt-to-assets ratio: A10 Network shows a debt-to-assets ratio of 0.00 for all the years from 2020 to 2024. This indicates that the company has no debt relative to its total assets, suggesting a strong financial position and a low risk of financial distress related to debt obligations.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio remains at 0.00 for all the years, indicating that the company’s capital structure is not significantly influenced by debt. This also signifies a lower financial risk as the company is not relying heavily on debt to finance its operations.
3. Debt-to-equity ratio: The debt-to-equity ratio is also at 0.00 across all the years, indicating that A10 Network's financial structure is entirely equity-funded without any debt component. This implies a conservative approach to financing and a reduced financial risk due to the absence of debt.
4. Financial leverage ratio: The financial leverage ratio has shown some fluctuations over the years, ranging from 1.87 to 2.51. However, these values are relatively low, indicating that A10 Network has a low level of financial leverage and is less dependent on debt to support its operations.
In summary, based on the solvency ratios analyzed, A10 Network appears to have a very strong solvency position with minimal to no debt in its capital structure. This suggests a conservative financial strategy, lower financial risk, and a solid foundation for future growth and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.95 | 560.12 | 31.84 | — | 19,140.00 |
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt, indicating its financial health and risk level. Looking at the historical data for A10 Network's interest coverage, we observe fluctuations over the years.
As of December 31, 2020, A10 Network had an interest coverage ratio of 19,140.00, indicating a very strong ability to cover its interest expenses. However, the data for December 31, 2021 is not available (indicated as "—"), so it is unclear how the company performed in that specific year.
Moving forward, on December 31, 2022, the interest coverage ratio dropped significantly to 31.84. While it is still above 1, suggesting the company can cover its interest payments, the considerable decrease raises concerns about the company's ability to service its debt.
By December 31, 2023, the interest coverage ratio soared to 560.12, indicating a remarkable improvement and a very strong financial position for A10 Network. This surge suggests the company experienced significant growth or improved profitability during that period.
However, the interest coverage ratio fell again to 5.95 by December 31, 2024, signaling a decline in the company's ability to cover its interest expenses compared to the previous period. This drop may prompt further scrutiny into the company's financial performance and debt management strategies.
Overall, A10 Network has shown fluctuations in its interest coverage ratio over the years, with periods of very strong performance alongside decreases that warrant attention to ensure sustainable debt servicing capabilities.