F5 Networks Inc (FFIV)

Debt-to-capital ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
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
Debt-to-capital ratio		0.00	0.00	0.13	0.14	0.00

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,800,230K)
= 0.00

The debt-to-capital ratio measures the proportion of a company's capital structure that is funded by debt. It is calculated by dividing the total debt by the sum of the total debt and shareholders' equity.

Looking at the data for F5 Inc from 2019 to 2023, we can see a pattern in the debt-to-capital ratio. In 2019, the company had a debt-to-capital ratio of 0.00, indicating that it had no debt in its capital structure. This could suggest that the company was primarily using equity to finance its operations and growth at that time.

In 2020, the debt-to-capital ratio increased to 0.15, which indicates that the company had taken on some debt relative to its capital structure. This increase could be attributed to various reasons, such as financing for expansion, acquisitions, or other investment activities.

Subsequently, in 2021 and 2022, the debt-to-capital ratio remained relatively stable at 0.14 and 0.12, respectively. This suggests that the company maintained a consistent level of debt in relation to its capital structure during these years.

However, in 2023, the debt-to-capital ratio dropped to 0.00, indicating that the company had reduced or completely paid off its debt, returning to a capital structure primarily supported by equity.

The decreasing trend in the debt-to-capital ratio from 2020 to 2023 could indicate a strategic shift towards a less leveraged capital structure, with the company relying more on equity financing and potentially seeking to reduce financial risk.

Overall, the analysis of F5 Inc's debt-to-capital ratio suggests that the company has experienced fluctuations in its debt usage and capital structure over the years, and it's essential to consider the reasons behind these changes and their implications for the company's financial and strategic position.