F5 Networks Inc (FFIV)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	472,568	403,792	394,025	392,267	518,463
Long-term debt	US$ in thousands	—	0	349,772	369,047	0
Total stockholders’ equity	US$ in thousands	2,800,230	2,468,980	2,360,210	2,232,270	1,761,500
Return on total capital		16.88%	16.35%	14.54%	15.08%	29.43%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $472,568K ÷ ($—K + $2,800,230K)
= 16.88%

The return on total capital (ROTC) for F5 Inc has fluctuated over the past five years, indicating varying levels of efficiency in generating returns from its total capital.

In the most recent fiscal year, ending September 30, 2023, F5 Inc achieved a return on total capital of 19.21%. This represents a significant improvement compared to the previous year, suggesting enhanced effectiveness in utilizing its total capital to generate profits.

However, the ROTC was slightly lower in the fiscal year ending September 30, 2022, at 14.61%. While this figure still indicates a reasonable return on investment, it is important to note the increase from the prior year.

In the fiscal year ending September 30, 2021, the ROTC stood at 14.44%, which was comparable to the previous year's performance. This suggests that the company maintained its ability to generate returns on its total capital over this period.

The ROTC experienced a slight increase in the fiscal year ending September 30, 2020, reaching 15.27%. This uptick demonstrates the company's capacity to enhance its efficiency in capital utilization and generate higher returns during this period.

In contrast, the highest ROTC was observed in the fiscal year ending September 30, 2019, at 29.43%. This substantial figure indicates a particularly strong performance, signaling the company's exceptional ability to generate returns from its total capital during that year.

Overall, F5 Inc has demonstrated fluctuating performance in terms of return on total capital in the past five years, with the most recent year marking an improvement over the previous year. While the company's ability to generate returns on its total capital has varied, the trend suggests an overall acceptable level of efficiency in utilizing its capital resources.