F5 Networks Inc (FFIV)

Payables 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
Payables	US$ in thousands	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	62,627	55,630	68,156
Payables turnover		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	21.01	22.60	17.75

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,771,079K ÷ $60,084K
= 29.48

The payables turnover for F5 Inc has been relatively stable and consistently strong over the past eight quarters. The company's ability to manage its payables effectively is apparent, with a steady increase in the payables turnover ratio from 7.09 in Q3 2022 to 9.56 in Q1 2024.

A higher payables turnover ratio indicates that F5 Inc is paying off its accounts payable quickly, which can be beneficial for maintaining good relationships with suppliers and potentially taking advantage of early payment discounts. This consistent performance suggests that F5 Inc has a well-structured payables management system in place, allowing the company to efficiently manage its working capital and cash flow.

Overall, the trend in F5 Inc's payables turnover reflects positively on the company's financial health and operational efficiency in terms of managing its accounts payable effectively.