A10 Network (ATEN)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	43,968	38,648	53,079	31,642	19,140
Interest expense	US$ in thousands	7,384	69	1,667	0	1
Interest coverage		5.95	560.12	31.84	—	19,140.00

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $43,968K ÷ $7,384K
= 5.95

Interest coverage is a financial ratio that measures a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations. Looking at the provided data for A10 Network, the interest coverage ratio for December 31, 2020, was 19,140.00, which is extremely high and suggests a strong ability to cover interest expenses.

For December 31, 2021, the data shows an em dash, indicating that the interest coverage ratio was not reported or potentially unavailable. However, for December 31, 2022, the interest coverage ratio improved significantly to 31.84, indicating an enhanced capacity to meet interest payments.

Subsequently, on December 31, 2023, the interest coverage ratio surged to 560.12, showcasing a substantial increase in the ability to handle interest expenses. However, by December 31, 2024, the interest coverage ratio declined to 5.95, signaling a decrease in the company's ability to cover interest costs compared to the previous year.

Overall, based on the data provided, A10 Network experienced fluctuations in its interest coverage ratio over the years, with significant improvements in some periods and a decrease in others. It is essential for stakeholders to monitor these ratios to gauge the company's financial health and its ability to manage its debt obligations effectively.