F5 Networks Inc (FFIV)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.02% | 78.50% | 79.35% | 80.65% | 82.29% |
| Operating profit margin | 23.34% | 16.71% | 14.86% | 15.06% | 16.61% |
| Pretax margin | 24.64% | 17.19% | 14.18% | 14.79% | 16.79% |
| Net profit margin | 20.08% | 13.97% | 11.86% | 12.66% | 13.02% |
The profitability ratios of F5 Networks Inc have shown a mixed trend over the past five years. The gross profit margin, indicating the company's ability to generate profit from its core operations, has fluctuated with a peak in 2020 at 82.29% and a low in 2023 at 78.50%. However, overall it has remained relatively high, standing at 80.02% in the most recent period.
The operating profit margin, which reflects operating efficiency and cost management, has shown a general improvement from 2019 to 2024, with a significant increase from 16.71% in 2023 to 23.34% in 2024. This suggests that F5 Networks has been able to better control its operating expenses while increasing profitability.
The pretax margin, indicating the company's profitability before taxes, has shown volatility, with significant fluctuations from year to year. The highest pretax margin was recorded in 2024 at 24.64%, while the lowest was in 2021 at 14.18%. This variability may indicate changing economic conditions impacting F5 Networks' financial performance.
The net profit margin, representing the final profitability after all expenses have been deducted, has also displayed fluctuations over the years. Although there has been some improvement in recent years, with the ratio standing at 20.08% in 2024, profitability was higher in 2020 at 13.02%. Overall, the company has shown a generally positive trend in net profitability.
In conclusion, F5 Networks Inc has managed to maintain strong gross profit margins and has shown improvement in operating efficiency and net profitability over the past five years, despite some fluctuations in the pretax margin. Continued monitoring of these ratios will be essential to assess the company's ongoing financial health.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.73% | 9.00% | 7.65% | 7.88% | 8.39% |
| Return on assets (ROA) | 10.10% | 7.53% | 6.11% | 6.63% | 6.57% |
| Return on total capital | 21.05% | 16.88% | 16.35% | 14.54% | 15.08% |
| Return on equity (ROE) | 18.11% | 14.10% | 13.05% | 14.03% | 13.77% |
F5 Networks Inc has shown consistent improvement in its profitability ratios over the past five years, indicating efficient management of assets and capital.
1. Operating return on assets (Operating ROA) has seen a positive trend, increasing from 7.65% in 2022 to 11.73% in 2024. This suggests that the company has been effectively generating profits from its operating activities relative to its total assets.
2. Return on assets (ROA) has also displayed steady growth, rising from 6.11% in 2022 to 10.10% in 2024. This metric reflects F5 Networks Inc's ability to generate earnings from its total assets, indicating improved asset utilization efficiency.
3. Return on total capital has exhibited an upward trajectory, reaching 21.05% in 2024 from 14.54% in 2021. This shows that the company has been generating strong returns on its total invested capital, which is a positive sign for stakeholders.
4. Return on equity (ROE) has been on the rise, increasing from 13.05% in 2022 to 18.11% in 2024. This indicates that F5 Networks Inc has been effectively generating returns for its equity shareholders, reflecting improved profitability and shareholder value.
Overall, F5 Networks Inc's profitability ratios demonstrate a positive trend, highlighting its ability to efficiently utilize assets and generate favorable returns for both investors and capital providers.