F5 Networks Inc (FFIV)

To analyze F5 Inc's number of days of payables, we will use the formula:

Number of Days of Payables = (Accounts Payable / Cost of Goods Sold) x Number of Days in the Period

F5 Inc's number of days of payables has fluctuated over the past five years:
- In Sep 30, 2023, the number of days of payables was 38.95 days, a significant decrease from the previous year.
- In Sep 30, 2022, the number of days of payables was 76.55 days, which was notably higher compared to the prior year.
- In Sep 30, 2021, the number of days of payables was 45.96 days, showing a decrease from the prior year.
- In Sep 30, 2020, the number of days of payables was 57.69 days.
- In Sep 30, 2019, the number of days of payables was 64.11 days.

The number of days of payables represents the average number of days it takes for a company to pay its suppliers. A lower number of days of payables indicates that the company is paying its suppliers more quickly, while a higher number suggests a longer time to pay.

The decrease in the number of days of payables from 76.55 days in 2022 to 38.95 days in 2023 may indicate an improvement in the efficiency of F5 Inc's payables management. It implies that the company is taking less time to pay its suppliers, potentially leading to better relationships and terms with its vendors.

The improvement in the number of days of payables could also indicate effective working capital management, freeing up cash for other uses within the business. However, a significant decrease in this ratio could also imply that F5 Inc is potentially missing out on utilizing the supplier credit effectively.

It is important to consider other factors such as changes in the company's payment terms or supplier relationships that may have influenced the number of days of payables. Further analysis of F5 Inc's financial statements and industry benchmarks may provide additional insights into the company's payables management and financial health.

Peer comparison

Sep 30, 2023