F5 Networks Inc (FFIV)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	2,822,220	2,827,870	2,717,440	2,616,420	2,361,020
Total current assets	US$ in thousands	2,109,470	1,848,770	1,912,220	1,611,100	1,793,480
Total current liabilities	US$ in thousands	1,489,650	1,472,780	1,839,950	1,391,530	1,288,280
Working capital turnover		4.55	7.52	37.60	11.92	4.67

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,822,220K ÷ ($2,109,470K – $1,489,650K)
= 4.55

The working capital turnover of F5 Networks Inc has fluctuated over the past five years. The ratio was highest in September 2022 at 37.60, indicating that the company was able to generate significant revenue relative to its working capital during that period. In contrast, the ratio dropped to 4.67 in September 2020, suggesting a lower level of efficiency in utilizing working capital to generate revenue.

Overall, a higher working capital turnover ratio typically indicates better efficiency in utilizing working capital to generate sales. However, it is important to consider other factors such as industry norms and company-specific circumstances when interpreting this ratio.