F5 Networks Inc (FFIV)

Quick 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	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
Receivables	US$ in thousands	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	322,029	320,465	321,484
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
Quick ratio		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	1.17	1.22	1.52

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($822,572K + $3,287K + $513,176K) ÷ $1,524,460K
= 0.88

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term liabilities.

Analyzing the quick ratio trend of F5 Inc from Q1 2022 to Q1 2024, we observe an overall improving trend. The quick ratio increased steadily from 0.93 in Q3 2022 to 1.26 in Q1 2024, indicating a more favorable liquidity position. This suggests that F5 Inc has been able to enhance its ability to meet its short-term obligations with its quick assets over the period.

However, it is important to note that the quick ratio fluctuated within the range of 0.93 to 1.26 during the period, which may indicate variability in the company's liquidity position. This fluctuation could be due to changes in the composition of current assets or liabilities.

Overall, the trend of F5 Inc's quick ratio over the period suggests a positive improvement in liquidity, but it is essential to continue monitoring the ratio to ensure the company maintains a healthy liquidity position.