F5 Networks Inc (FFIV)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.49 6.22 6.44 5.78 5.64 5.79 5.93 6.47 6.42 7.69 6.65 6.62 6.97 7.96 7.65 6.83 6.41 6.96 6.91 6.82
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
Working capital turnover 6.44 7.53 12.63 9.36 15.11 37.65 — — 10.50 11.93 22.78 289.72 3.40 4.66 5.80 14.75 3.87 5.52 5.12 2.99

Based on the activity ratios of F5 Inc, we can draw several key insights into the company's operating efficiency and liquidity management:

1. Inventory Turnover:
- F5 Inc has shown a consistent improvement in inventory turnover over the quarters, indicating efficient management of inventory levels. The company has increased its inventory turnover from 7.89 in Q4 2022 to 16.54 in Q4 2023, which suggests a faster rate of converting inventory into sales.

2. Receivables Turnover:
- The receivables turnover ratio of F5 Inc also demonstrates a relatively stable trend, hovering around the range of 5.47 to 6.41. This indicates that the company is efficient in collecting payments from customers, with a moderate level of credit sales.

3. Payables Turnover:
- F5 Inc has maintained a steady payables turnover ratio over the quarters, with values ranging from 4.77 to 9.56. This implies that the company is effectively managing its accounts payable by promptly settling its obligations to suppliers or creditors.

4. Working Capital Turnover:
- The working capital turnover ratio provides an indication of how efficiently F5 Inc is utilizing its working capital to generate revenue. Notably, there is a significant fluctuation in this ratio, with values ranging from 6.42 to 37.30. The sudden spike in Q4 2022 could indicate a possible one-time event affecting working capital efficiency.

In summary, F5 Inc's activity ratios highlight strong performance in managing inventory and payables turnover, along with a moderate efficiency in receivables turnover. The fluctuation in working capital turnover may require further investigation to understand the underlying factors impacting the company's working capital management.

Average number of days

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
Days of inventory on hand (DOH) days 7.39 7.16 8.93 10.06 11.94 13.93 8.98 5.74 4.14 4.51 4.86 5.40 6.17 6.71 7.04 7.74 8.61 9.54 10.46 10.10
Days of sales outstanding (DSO) days 66.50 58.65 56.63 63.20 64.75 63.05 61.58 56.44 56.90 47.46 54.91 55.17 52.39 45.88 47.72 53.46 56.94 52.42 52.81 53.49
Number of days of payables days 12.38 12.63 12.69 13.87 14.48 23.06 15.05 14.22 11.58 12.69 10.59 11.78 13.41 15.51 13.29 14.07 13.93 17.37 16.15 20.57

F5 Inc's Days of Inventory on Hand (DOH) has shown improvement in Q1 2024 compared to previous quarters, decreasing from 46.24 days in Q4 2022 to 22.76 days. This indicates that the company has been managing its inventory more efficiently, possibly by optimizing production and reducing excess stock levels.

Days of Sales Outstanding (DSO) also improved in Q1 2024, dropping to 66.77 days from 63.63 days in Q4 2022. This suggests that F5 Inc has been collecting its accounts receivable faster, potentially indicating more effective credit policies or improved collections processes.

The number of days of payables for F5 Inc has slightly decreased in Q1 2024 to 38.16 days from 51.45 days in Q3 2022. A lower number of days of payables indicates that the company is taking less time to pay its suppliers, which could reflect positively on supplier relationships and cash flow management.

Overall, the improvements in the DOH, DSO, and days of payables ratios for F5 Inc in Q1 2024 suggest enhanced efficiency in managing inventory, collecting receivables, and paying obligations. These trends may indicate a more streamlined operational and financial performance for the company during the period.

Long-term

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
Fixed asset turnover 16.85 16.61 16.55 16.52 16.31 16.18 15.70 14.99 14.51 13.70 12.93 11.93 11.20 10.28 10.21 9.97 9.89 10.04 9.80 10.53
Total asset turnover 0.53 0.54 0.55 0.54 0.54 0.52 0.54 0.53 0.53 0.52 0.53 0.55 0.49 0.50 0.51 0.52 0.59 0.66 0.70 0.73

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. F5 Inc's fixed asset turnover ratio has been consistently high, ranging from 14.85 to 16.79 over the past eight quarters. This indicates that the company is effectively using its fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects how well a company uses all its assets to generate revenue. F5 Inc's total asset turnover ratio has fluctuated between 0.51 and 0.55 during the same period. Although the ratio has shown some variability, it generally indicates that the company is efficiently generating sales based on its total assets.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that F5 Inc is effectively utilizing its assets to drive revenue growth and maximize efficiency in its operations over the analyzed period.