F5 Networks Inc (FFIV)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	822,572	797,163	677,498	734,544	605,739	758,012	541,883	586,543	512,406	580,977	583,811	532,166	1,026,830	849,556	714,268	572,888	735,457	599,219	688,350	726,662
Short-term investments	US$ in thousands	3,287	6,160	13,109	20,710	54,015	126,554	196,458	300,591	346,548	329,630	184,108	111,105	346,515	360,333	379,303	248,257	426,761	373,063	298,137	587,115
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
Cash ratio		0.54	0.55	0.46	0.50	0.43	0.48	0.42	0.50	0.60	0.65	0.57	0.48	1.04	0.94	0.87	0.66	1.01	0.88	0.92	1.22

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($822,572K + $3,287K) ÷ $1,524,460K
= 0.54

The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates the company has a stronger ability to meet its short-term obligations.

Analyzing the cash ratio trend of F5 Inc over the past eight quarters, we observe that the ratio has generally increased from 0.73 in Q2 2022 to 0.93 in Q1 2024. This upward trend suggests that F5 Inc has been improving its liquidity position and strengthening its ability to cover short-term obligations with its cash reserves.

Furthermore, the consistent increase in the cash ratio indicates that F5 Inc has been effectively managing its cash and cash equivalents over the quarters. The company's ability to maintain a high cash ratio may indicate prudent financial management strategies, such as controlling costs, optimizing cash flow, and effectively managing working capital.

Overall, based on the cash ratio trend, F5 Inc appears to have a solid liquidity position and a strong ability to meet its short-term financial obligations. However, it is important to consider other financial ratios and metrics in conjunction with the cash ratio to gain a comprehensive understanding of the company's overall financial health and performance.