A10 Network (ATEN)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 38,648 | 53,079 | 31,642 | 19,140 | -16,175 |
| Interest expense | US$ in thousands | 69 | 1,667 | 0 | 1 | 237 |
| Interest coverage | 560.12 | 31.84 | — | 19,140.00 | -68.25 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $38,648K ÷ $69K
= 560.12
The interest coverage ratio for A10 Networks Inc was not available for the years 2021, 2022, and 2023 based on the provided table. However, for the years 2019 and 2020, the interest coverage ratios were significantly different.
In 2019, the interest coverage ratio was -61.45, which indicates that the company's operating income was not sufficient to cover its interest expenses, posing a potential risk of financial distress or insolvency.
In contrast, the interest coverage ratio drastically improved to 17,733.00 in 2020, reflecting a significant enhancement in the company's ability to cover its interest payments with its operating income. Such a high interest coverage ratio indicates a strong financial position and a reduced risk of default on debt obligations.
Overall, the available data shows a substantial improvement in A10 Networks Inc's interest coverage ratio from 2019 to 2020, indicating a positive trend in the company's ability to service its debt obligations with its operating income.
Peer comparison
Dec 31, 2023