F5 Networks Inc (FFIV)

Fixed asset turnover

		Sep 30, 2024	Jun 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
Revenue (ttm)	US$ in thousands	2,827,520	2,787,720	2,794,867	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
Property, plant and equipment	US$ in thousands	150,943	154,238	161,525	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
Fixed asset turnover		18.73	18.07	17.30	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

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,827,520K ÷ $150,943K
= 18.73

Fixed asset turnover measures how efficiently a company is using its fixed assets to generate revenue. The higher the fixed asset turnover ratio, the better the company is at generating sales from its investment in property, plant, and equipment.

Analyzing the fixed asset turnover trend of F5 Networks Inc over the past few quarters, we observe a generally increasing trend, indicating improved efficiency in utilizing its fixed assets to generate sales. The ratio has increased steadily from 9.89 in December 2019 to 18.73 in September 2024, reaching its peak in the latest quarter.

This improvement suggests that F5 Networks Inc has been generating more revenue relative to its investments in fixed assets. It may indicate increased productivity, better asset utilization, or possibly a more streamlined and effective operating model.

Overall, the trend in fixed asset turnover for F5 Networks Inc reflects positively on its operational efficiency and effectiveness in utilizing its fixed assets to drive revenue growth.