F5 Networks Inc (FFIV)

Current ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total current assets	US$ in thousands	1,848,770	1,912,220	1,611,100	1,793,480	1,511,590
Total current liabilities	US$ in thousands	1,472,780	1,839,950	1,391,530	1,288,280	1,105,530
Current ratio		1.26	1.04	1.16	1.39	1.37

September 30, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,848,770K ÷ $1,472,780K
= 1.26

The current ratio of F5 Inc has fluctuated over the past five years, reflecting the company's ability to meet its short-term liabilities with its current assets. In 2023, the current ratio improved to 1.26 from 1.04 in 2022, indicating a stronger short-term liquidity position. This may suggest an improvement in the company's ability to cover its short-term obligations using its current assets.

Comparing 2023 to 2021, the current ratio decreased from 1.16 to 1.26. This implies a slight deterioration in the company's short-term liquidity position. However, when compared to 2020 and 2019, the current ratio in 2023 is still lower. This could be a concern if the trend continues, as it may indicate a decreasing ability to cover short-term liabilities.

It is important to note that while a current ratio above 1 generally indicates that a company has more current assets than current liabilities, the ideal current ratio may vary by industry. Therefore, further analysis should consider industry benchmarks and the company's specific operational and strategic circumstances.