F5 Networks Inc (FFIV)

Working capital 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
Revenue (ttm)	US$ in thousands	2,816,688	2,830,769	2,832,628	2,804,474	2,735,523	2,720,645	2,701,609	2,678,636	2,689,699	2,618,816	2,545,335	2,477,072	2,415,234	2,356,422	2,331,994	2,312,136	2,273,582	2,242,447	2,214,768	2,193,577
Total current assets	US$ in thousands	1,961,750	1,848,770	1,713,780	1,825,180	1,714,510	1,912,220	1,688,920	1,734,830	1,687,970	1,611,100	1,466,710	1,335,650	2,029,810	1,793,480	1,665,430	1,408,730	1,737,470	1,511,590	1,504,900	1,807,460
Total current liabilities	US$ in thousands	1,524,460	1,472,780	1,489,540	1,525,600	1,533,480	1,839,950	1,768,700	1,773,230	1,431,890	1,391,530	1,354,960	1,327,100	1,319,250	1,288,280	1,263,320	1,252,010	1,150,510	1,105,530	1,072,070	1,074,790
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,816,688K ÷ ($1,961,750K – $1,524,460K)
= 6.44

F5 Inc's working capital turnover ratio has shown some fluctuations over the past eight quarters. The working capital turnover was relatively stable around 6 to 9.27 times in Q2 2023 to Q4 2023. However, there was a significant increase in Q1 2023, reaching 14.97 times, indicating that the company's working capital was used more efficiently to generate sales revenue during that period.

The working capital turnover then experienced a sharp decline in Q4 2022, dropping to 37.30 times, which suggests that the company was not utilizing its working capital effectively to support its operations and generate revenue during that quarter.

Unfortunately, data for Q2 2022 and Q3 2022 is not available, making it challenging to assess the trend over a longer period. It is recommended for F5 Inc to monitor its working capital turnover consistently to ensure optimal efficiency in managing its working capital to support its sales and operations.