F5 Networks Inc (FFIV)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	2,827,870	2,717,440	2,616,420	2,361,020	2,242,450
Property, plant and equipment	US$ in thousands	170,422	168,182	191,164	229,239	223,426
Fixed asset turnover		16.59	16.16	13.69	10.30	10.04

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,827,870K ÷ $170,422K
= 16.59

The fixed asset turnover ratio measures the efficiency of a company in generating sales from its investments in fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

Looking at the trend of F5 Inc's fixed asset turnover over the past five years, we can see a consistent increase from 10.04 in 2019 to 16.51 in 2023. This indicates that the company has been improving its ability to generate sales from its fixed assets over time.

The steady improvement in the fixed asset turnover ratio suggests that F5 Inc has been effectively managing and utilizing its fixed assets to drive sales. This could be a result of strategic investments in technology or operational efficiencies that have increased the productive capacity of its fixed assets.

Overall, the increasing trend in F5 Inc's fixed asset turnover ratio reflects positively on the company's operational efficiency and its ability to generate sales from its investment in fixed assets. It indicates that the company is effectively utilizing its fixed assets to drive revenue growth and create value for its shareholders.