F5 Networks Inc (FFIV)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	1,315,926	1,257,103	1,209,532
Inventory	US$ in thousands	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	34,401	36,009	33,463
Inventory turnover		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	38.25	34.91	36.15

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,771,079K ÷ $35,840K
= 49.42

The inventory turnover of F5 Inc has fluctuated over the past eight quarters. In Q1 2024 and Q4 2023, the company demonstrated a relatively high inventory turnover of 16.03 and 16.54, respectively. This indicates that F5 Inc efficiently manages its inventory by quickly selling and replacing it within the same year.

In Q3 2023 and Q2 2023, the inventory turnover was lower at 13.01 and 11.60, which suggests a slightly slower rate of sales relative to inventory levels during those periods. This could potentially indicate that the company may have experienced challenges in selling its products rapidly or may have been holding a higher than optimal level of inventory.

Moreover, in Q1 2023 and Q4 2022, the inventory turnover dipped further to 9.45 and 7.89, respectively. These lower turnover rates may indicate inefficiencies in managing inventory, such as overstocking or slow-moving products.

However, in Q3 2022 and Q2 2022, the inventory turnover improved significantly to 11.89 and 18.33, respectively. This suggests that F5 Inc made effective changes in its inventory management practices, resulting in a more efficient turnover of inventory during those periods.

Overall, while F5 Inc has experienced fluctuations in its inventory turnover over the past eight quarters, including both highs and lows, the company should continue to monitor and manage its inventory levels effectively to ensure optimal operations and financial performance.