F5 Networks Inc (FFIV)

Total asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	2,827,870	2,717,440	2,616,420	2,361,020	2,242,450
Total assets	US$ in thousands	5,248,330	5,276,190	4,997,280	4,677,920	3,390,280
Total asset turnover		0.54	0.52	0.52	0.50	0.66

September 30, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,827,870K ÷ $5,248,330K
= 0.54

The total asset turnover ratio measures a company's efficiency in generating sales revenue from its total assets. It indicates how effectively the company is utilizing its assets to generate sales.

Based on the data provided, we can see that F5 Inc's total asset turnover ratio has fluctuated over the past five years. In 2019, the ratio was at its highest point, standing at 0.66, indicating that the company was able to generate a higher level of sales in relation to its total assets. However, in the subsequent years, the ratio experienced a downward trend, reaching its lowest point of 0.50 in 2020 before slightly recovering to 0.54 in 2023.

The decrease in total asset turnover from 2019 to 2020 suggests that F5 Inc may have become less efficient in utilizing its assets to generate sales revenue. This could be attributable to factors such as an increase in total assets without a corresponding increase in sales, inefficiencies in asset utilization, or a decline in sales performance.

It's worth noting that while the total asset turnover ratio improved slightly from 2020 to 2023, it still remained below the 2019 level, indicating that the company's asset utilization efficiency has not fully recovered.

In conclusion, F5 Inc's total asset turnover ratio has shown fluctuation over the past five years, signaling changes in the company's efficiency in utilizing its assets to generate sales. Further analysis of the company's asset management and sales performance would be beneficial in understanding the underlying factors contributing to these trends.