F5 Networks Inc (FFIV)

Quick ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	1,074,600	934,809	902,680	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
Short-term investments	US$ in thousands	0	812	802	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
Receivables	US$ in thousands	389,024	441,386	413,725	513,176	454,832	439,518	485,622	485,277	469,979	455,762	414,218	419,282	340,536	382,897	374,404	346,670	296,183	304,874	338,655	354,668
Total current liabilities	US$ in thousands	1,489,650	1,455,580	1,502,420	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
Quick ratio		0.98	0.95	0.88	0.88	0.85	0.76	0.81	0.75	0.74	0.68	0.73	0.89	0.90	0.85	0.77	1.30	1.17	1.11	0.93	1.32

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,074,600K + $0K + $389,024K) ÷ $1,489,650K
= 0.98

The quick ratio of F5 Networks Inc has shown some fluctuations over the periods analyzed. It indicates the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1.0 typically signifies that the company can cover its current liabilities with its quick assets (assets that can be converted to cash quickly).

Looking at the trend in F5 Networks Inc's quick ratio from December 2019 to September 2024, we observe variability in the ratio values. The quick ratio ranged between 0.68 to 1.32 during this period. It initially decreased from 0.93 in March 2020 to 0.68 in June 2022 before gradually increasing to 1.32 in September 2020.

In recent quarters, the quick ratio has been relatively stable, hovering around 0.88 to 0.98. This suggests that F5 Networks Inc has maintained a strong ability to meet its short-term obligations with its quick assets. However, the ratio is below 1.0 for most periods, indicating the company relies more on its current assets like accounts receivable and inventory to cover its short-term debts.

Overall, while the quick ratio has fluctuated over the periods analyzed, the recent values suggest that F5 Networks Inc may be operating efficiently in the short term, though continued monitoring of the ratio is advisable to ensure liquidity remains stable.