F5 Networks Inc (FFIV)

Payables 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
Payables	US$ in thousands	67,894	53,618	57,702	60,084	63,315	65,499	69,952	71,760	113,178	73,420	69,131	58,253	62,096	49,372	53,567	57,542	64,472	54,389	56,200	52,407
Payables turnover		24.92	31.19	30.06	29.48	28.89	28.75	26.32	25.21	15.83	24.25	25.66	31.51	28.76	34.48	30.99	27.21	23.53	27.47	25.95	26.21

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,691,809K ÷ $67,894K
= 24.92

Payables turnover is a financial ratio that measures how efficiently a company manages its trade payables. It is calculated by dividing the total purchases made on credit by the average trade payables outstanding during a specific period. A higher payables turnover indicates that the company is paying its suppliers more frequently and efficiently.

Analyzing F5 Networks Inc's payables turnover over the last few quarters, we observe fluctuations in the ratio. From Dec 31, 2019, to Sep 30, 2020, there was a gradual increase in payables turnover, indicating that the company was managing its trade payables more efficiently during this period. However, from Sep 30, 2020, to Mar 31, 2021, there was a slight decline in the ratio, suggesting a potential slowdown in the management of trade payables.

From Mar 31, 2021, to Sep 30, 2022, there was some volatility in the payables turnover ratio, with fluctuations in the efficiency of managing trade payables. Notably, there was a significant decrease in payables turnover from Mar 31, 2022, to Sep 30, 2022, indicating a possible extension in the payment period for trade payables during that period.

Subsequently, from Sep 30, 2022, to Dec 31, 2023, the payables turnover ratio exhibited a more stable trend with slight improvements, suggesting better management of trade payables. However, from Dec 31, 2023, to Sep 30, 2024, there was a gradual decline in the ratio, indicating that the company may be taking longer to pay its suppliers, potentially affecting supplier relationships.

Overall, the analysis of F5 Networks Inc's payables turnover highlights fluctuations in the efficiency of managing trade payables over the past few quarters. It is important for the company to maintain a balance in managing its payables to ensure healthy supplier relationships and optimize cash flow management.