F5 Networks Inc (FFIV)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	545,872	472,568	408,357	412,252	380,853	403,792	422,626	411,574	390,428	394,025	366,274	357,483	387,680	392,267	408,368	423,487	482,582	518,463	557,341	606,554
Long-term debt	US$ in thousands	—	—	—	—	—	0	0	0	344,954	349,772	354,591	359,410	364,229	369,047	373,866	378,685	—	0	—	—
Total stockholders’ equity	US$ in thousands	2,860,980	2,800,230	2,657,500	2,725,560	2,582,350	2,468,980	2,322,980	2,397,130	2,405,360	2,360,210	2,192,170	2,007,820	2,401,590	2,232,270	2,153,900	1,998,190	1,929,460	1,761,500	1,623,780	1,467,410
Return on total capital		19.08%	16.88%	15.37%	15.13%	14.75%	16.35%	18.19%	17.17%	14.20%	14.54%	14.38%	15.10%	14.02%	15.08%	16.16%	17.82%	25.01%	29.43%	34.32%	41.34%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $545,872K ÷ ($—K + $2,860,980K)
= 19.08%

F5 Inc's return on total capital has shown a positive trend over the past eight quarters. The company's return on total capital increased steadily from Q1 2023 to Q1 2024, indicating a consistent improvement in utilizing its capital effectively to generate returns for shareholders. The highest return on total capital was recorded in Q1 2024 at 21.36%, showcasing the company's ability to generate profits relative to the total capital employed. Overall, the increasing trend in return on total capital reflects positively on F5 Inc's financial performance and efficiency in deploying its resources to drive profitability.