F5 Networks Inc (FFIV)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,691,809	1,672,210	1,734,500	1,771,079	1,829,416	1,883,298	1,841,277	1,809,250	1,791,260	1,780,512	1,774,045	1,835,464	1,786,162	1,702,432	1,660,252	1,565,817	1,517,231	1,494,190	1,458,310	1,373,375
Inventory	US$ in thousands	76,378	78,537	69,760	35,840	35,874	46,102	50,745	59,197	68,365	43,787	27,883	20,795	22,055	22,649	24,571	26,455	27,898	28,826	30,942	32,381
Inventory turnover		22.15	21.29	24.86	49.42	51.00	40.85	36.28	30.56	26.20	40.66	63.62	88.26	80.99	75.17	67.57	59.19	54.38	51.83	47.13	42.41

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,691,809K ÷ $76,378K
= 22.15

The inventory turnover ratio of F5 Networks Inc has fluctuated over the historical period provided. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period.

At the end of September 2024, the inventory turnover ratio was 22.15, showing a slight increase from the previous quarter. This implies that the company's inventory was turned over 22.15 times during the last 12 months, suggesting efficient management of inventory levels.

The trend in the inventory turnover ratio for F5 Networks Inc has shown variability over time, with some quarters exhibiting sharp increases in turnover. For example, in March 2022 and December 2021, the company achieved very high turnover ratios of 63.62 and 88.26, respectively, indicating rapid movement of inventory during those periods.

However, there have been quarters with lower inventory turnover ratios, such as in September 2022 and March 2023, which could suggest slower sales or issues with inventory management during those periods.

Overall, a high inventory turnover ratio is generally seen as positive as it indicates efficient management of inventory and potentially lower carrying costs. On the other hand, a low inventory turnover ratio may imply excess inventory levels or slow-moving products, which could lead to increased holding costs and potential obsolescence risks. F5 Networks Inc should continue to monitor and optimize its inventory levels to ensure efficient operations and profitability.