F5 Networks Inc (FFIV)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,800,230	2,468,980	2,360,210	2,232,270	1,761,500
ROE		14.10%	13.05%	14.03%	13.77%	24.28%

September 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $394,948K ÷ $2,800,230K
= 14.10%

F5 Inc's return on equity (ROE) has exhibited some fluctuations over the past five years. In 2019, the ROE was at its highest level, standing at 24.28%. This indicated that for every dollar of shareholders' equity, the company generated a profit of 24.28 cents. However, in the subsequent years, the ROE experienced a downward trend, reaching its lowest point in 2020 at 13.77%.

In 2021, there was a slight improvement in the ROE to 14.03%, suggesting that the company was able to enhance its profitability in relation to shareholders' equity. The following year, in 2022, the ROE increased marginally to 13.05%, but still remained below the levels seen in the earlier years.

Notably, in the most recent period ending September 30, 2023, the ROE rebounded to 14.10%, indicating a modest improvement in the company's ability to generate profits from its shareholders' equity.

The fluctuation in F5 Inc's ROE over the years suggests that there may have been changes in the company's profitability, asset utilization, and financial leverage. This warrants a closer examination of the company's financial statements to determine the factors influencing the ROE and whether management strategies have been effective in generating value for shareholders.