F5 Networks Inc (FFIV)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	—	—	0	349,772	369,047
Total assets	US$ in thousands	5,613,000	5,248,330	5,276,190	4,997,280	4,677,920
Debt-to-assets ratio		0.00	0.00	0.00	0.07	0.08

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $5,613,000K
= 0.00

The debt-to-assets ratio of F5 Networks Inc has shown a consistent trend of decreasing over the past five years. As of September 30, 2024, the company had a debt-to-assets ratio of 0.00, indicating that it had no debt relative to its total assets. This is a positive sign as it suggests that the company's assets are predominantly financed by equity rather than debt, reducing its financial risk.

Comparing this to previous years, the company has managed to maintain a debt-free balance sheet since 2022, where the debt-to-assets ratio was also 0.00. This implies that F5 Networks Inc has been successful in managing its capital structure by minimizing its reliance on debt financing.

In contrast, in 2021 and 2020, the debt-to-assets ratio was 0.07 and 0.08, respectively, reflecting a higher level of debt relative to assets during those years. The subsequent decrease in the ratio indicates that the company has made efforts to deleverage and strengthen its financial position, potentially by paying off debt or increasing equity investments.

Overall, the downward trend in the debt-to-assets ratio for F5 Networks Inc suggests a prudent financial strategy of maintaining a low debt burden and ensuring a healthy balance between debt and equity in its capital structure.