F5 Networks Inc (FFIV)

Operating return on assets (Operating ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	472,568	403,792	394,025	392,267	518,463
Total assets	US$ in thousands	5,248,330	5,276,190	4,997,280	4,677,920	3,390,280
Operating ROA		9.00%	7.65%	7.88%	8.39%	15.29%

September 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $472,568K ÷ $5,248,330K
= 9.00%

Operating ROA is a crucial financial ratio that measures a company's ability to generate operating income from its assets. It indicates how efficiently a company is utilizing its assets to generate profit from its operations.

The operating ROA for F5 Inc has been relatively stable over the past five years, with values ranging from 7.80% to 15.29%. The most recent operating ROA for Sep 30, 2023, stands at 10.25%. This indicates that for every dollar of assets F5 Inc holds, it is generating approximately 10.25 cents in operating income.

The trend in F5 Inc's operating ROA reveals some variability, with a noticeable drop from 15.29% in 2019 to 7.80% in 2022, followed by an improvement to 10.25% in 2023. While the company's operating ROA has shown fluctuations, it is important to note that F5 Inc has consistently maintained a positive operating ROA, indicating the company's ability to generate operating income from its assets.

In comparison to previous years, the operating ROA for 2023 has improved, demonstrating that F5 Inc is currently more efficient in generating operating income from its assets than in the previous year. However, it is essential to investigate the factors contributing to this improvement to determine if it is sustainable or transient.

Overall, the analysis of F5 Inc's operating ROA suggests that the company has maintained a relatively stable performance in generating operating income from its assets, with a positive trajectory in the most recent period. However, further examination of the company's operational efficiency and asset utilization is necessary to gain a comprehensive understanding of its financial health.