A10 Network (ATEN)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	389,809	369,105	393,085	290,811	274,053
Total stockholders’ equity	US$ in thousands	207,876	181,012	208,888	115,974	108,787
Financial leverage ratio		1.88	2.04	1.88	2.51	2.52

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $389,809K ÷ $207,876K
= 1.88

A10 Networks Inc's financial leverage ratio has shown some fluctuations over the past five years. The ratio decreased from 2.52 in 2019 to 2.51 in 2020 but then decreased significantly to 1.88 in 2021. However, it increased again to 2.04 in 2022 before leveling off at 1.88 in 2023.

A financial leverage ratio above 1 indicates that the company relies more on debt financing than on equity. In the case of A10 Networks Inc, the ratios above 1.88 suggest that the company has a significant amount of debt in its capital structure.

The decreasing trend in the financial leverage ratio from 2020 to 2021 indicates that the company may have reduced its reliance on debt financing during that period. However, the subsequent increase in 2022 followed by the stabilization in 2023 signifies a shift back towards higher debt levels relative to equity.

Overall, A10 Networks Inc's financial leverage ratio indicates that the company has a moderate to high level of financial leverage, which could potentially impact its financial stability and risk profile. Investors and stakeholders should closely monitor the company's debt levels and its ability to manage debt-related risks in the future.