F5 Networks Inc (FFIV)

Fixed asset turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,816,688	2,830,769	2,832,628	2,804,474	2,735,523	2,720,645	2,701,609	2,678,636	2,689,699	2,618,816	2,545,335	2,477,072	2,415,234	2,356,422	2,331,994	2,312,136	2,273,582	2,242,447	2,214,768	2,193,577
Property, plant and equipment	US$ in thousands	167,113	170,422	171,147	169,771	167,709	168,182	172,060	178,742	185,355	191,164	196,780	207,599	215,649	229,239	228,293	232,006	229,800	223,426	226,002	208,221
Fixed asset turnover		16.85	16.61	16.55	16.52	16.31	16.18	15.70	14.99	14.51	13.70	12.93	11.93	11.20	10.28	10.21	9.97	9.89	10.04	9.80	10.53

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,816,688K ÷ $167,113K
= 16.85

The fixed asset turnover ratio measures how effectively a company generates revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.

Analyzing F5 Inc's fixed asset turnover ratio over the past eight quarters, we observe a consistent upward trend, starting from 14.85 in Q2 2022 and steadily increasing to 16.79 in Q1 2024. This demonstrates an improvement in the efficiency of using fixed assets to generate revenue over time.

The company's ability to generate sales from its fixed assets has been consistently strong, with ratios consistently above 15. The increasing trend indicates that F5 Inc is making more efficient use of its fixed assets to generate revenue, which is a positive sign of operational efficiency and effective asset management.

Overall, the trend in F5 Inc's fixed asset turnover ratio suggests that the company is effectively leveraging its investment in fixed assets to drive sales growth and improve profitability.