F5 Networks Inc (FFIV)

Return on equity (ROE)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	566,778	394,948	322,160	331,241	307,441
Total stockholders’ equity	US$ in thousands	3,129,380	2,800,230	2,468,980	2,360,210	2,232,270
ROE		18.11%	14.10%	13.05%	14.03%	13.77%

September 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $566,778K ÷ $3,129,380K
= 18.11%

Over the past five years, F5 Networks Inc has shown a consistent improvement in its return on equity (ROE) performance. The ROE has gradually increased from 13.77% in 2020 to 18.11% in 2024, indicating that the company has been generating higher profits relative to the shareholders' equity invested in the business. This improvement suggests that F5 Networks has been effectively utilizing its equity to generate returns for its shareholders.

The increasing trend in ROE reflects the company's ability to efficiently manage its assets and liabilities to drive profitability. A higher ROE signifies that F5 Networks is generating more profits for each unit of equity invested, which is a positive indicator of the company's financial health and operational efficiency.

Overall, the improving ROE of F5 Networks Inc over the past five years demonstrates the company's steady progress in maximizing shareholder value through effective use of its equity and resources.