A10 Network (ATEN)

Financial leverage ratio

		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
Total assets	US$ in thousands	432,815	407,747	395,658	389,809	377,842	368,232	357,285	369,105	352,661	384,565	361,747	393,085	374,445	296,138	291,580	290,811	284,097	272,608	270,057	274,053
Total stockholders’ equity	US$ in thousands	231,829	217,270	214,309	207,876	196,922	192,938	185,501	181,012	160,734	194,759	185,977	208,888	203,595	124,505	124,659	115,974	121,701	110,860	113,252	108,787
Financial leverage ratio		1.87	1.88	1.85	1.88	1.92	1.91	1.93	2.04	2.19	1.97	1.95	1.88	1.84	2.38	2.34	2.51	2.33	2.46	2.38	2.52

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $432,815K ÷ $231,829K
= 1.87

The financial leverage ratio of A10 Network has shown some fluctuations over the analyzed period. The ratio decreased from 2.52 as of December 31, 2019, to 1.88 as of December 31, 2023. This downward trend indicates a reduction in the company's reliance on debt to finance its operations and growth.

However, from March 31, 2024, the ratio slightly increased to 1.85 as of that date. This could suggest a potential uptick in leverage, although the ratio remains relatively low compared to the earlier periods.

Overall, the decreasing trend in the financial leverage ratio from 2019 to 2023 might indicate a more conservative approach to capital structure, aiming to lower financial risk and improve financial stability. Investors and stakeholders may view this trend positively, as lower leverage typically implies lower interest expenses and lower financial risk for the company.