F5 Networks Inc (FFIV)

Gross profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Gross profit	US$ in thousands	2,219,860	2,156,220	2,110,270	1,942,940	1,885,870
Revenue	US$ in thousands	2,827,870	2,717,440	2,616,420	2,361,020	2,242,450
Gross profit margin		78.50%	79.35%	80.65%	82.29%	84.10%

September 30, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,219,860K ÷ $2,827,870K
= 78.50%

F5 Inc's gross profit margin has exhibited a declining trend over the past five years. In September 2023, the gross profit margin stood at 78.91%, reflecting a decrease from 79.98% in September 2022, and a substantial reduction from 84.10% in September 2019.

The declining gross profit margin suggests that the company's cost of goods sold has been increasing relative to its sales revenue. This may indicate challenges in effectively managing production and procurement costs, or difficulties in maintaining pricing power in the face of competitive pressures.

It is important for F5 Inc to closely monitor its gross profit margin and take appropriate measures to address the factors contributing to its decline. This could involve optimizing its supply chain, negotiating better terms with suppliers, and re-evaluating pricing strategies to ensure sustainable profitability.

Investors and stakeholders should keep a close watch on F5 Inc's efforts to reverse this trend and regain stability in its gross profit margin, as it is a key indicator of the company's operational efficiency and profitability.