F5 Networks Inc (FFIV)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	394,948	322,160	331,241	307,441	427,734
Total assets	US$ in thousands	5,248,330	5,276,190	4,997,280	4,677,920	3,390,280
ROA		7.53%	6.11%	6.63%	6.57%	12.62%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $394,948K ÷ $5,248,330K
= 7.53%

Based on the provided data, we can see the return on assets (ROA) for F5 Inc over the past five years. ROA is a key financial ratio that measures a company's ability to generate profits from its assets.

Analyzing the trend in F5 Inc's ROA over the five-year period, we observe fluctuations in the ratio. In 2019, the ROA was notably high at 12.62%, indicating that the company was generating significant profit relative to its assets that year. However, in the subsequent years, the ROA decreased, with values of 6.57% in 2020, 6.63% in 2021, and 6.11% in 2022.

The most recent data, from Sep 30, 2023, shows a slight improvement in ROA to 7.53%. This suggests that F5 Inc has been more effective in generating profits from its assets in the most recent period compared to the preceding year.

It is important to note that a higher ROA indicates that a company is more efficient in using its assets to generate earnings. Conversely, a lower ROA may suggest inefficiency in asset utilization.

Overall, while the ROA has fluctuated over the years, the recent uptick in the ratio in 2023 indicates a potential improvement in F5 Inc's ability to generate profits from its assets. However, it would be important to delve deeper into the reasons behind these fluctuations in ROA, such as changes in asset utilization, profitability, or asset base, to gain a more comprehensive understanding of the company's performance.