F5 Networks Inc (FFIV)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	3,129,380	2,800,230	2,468,980	2,360,210	2,232,270
Debt-to-capital ratio		0.00	0.00	0.00	0.13	0.14

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,129,380K)
= 0.00

The debt-to-capital ratio for F5 Networks Inc has shown a decreasing trend over the past five years. In the latest fiscal year ending September 30, 2024, the company reported a debt-to-capital ratio of 0.00, indicating that the company had no debt in relation to its capital structure. This represents a significant improvement compared to the previous years, where the debt-to-capital ratio ranged from 0.13 to 0.14.

A debt-to-capital ratio of 0.00 suggests that F5 Networks Inc has a strong balance sheet with little to no reliance on debt financing. This may indicate a conservative financial strategy that prioritizes equity financing and minimizes financial risk associated with debt obligations. However, it is essential to consider the implications of a low debt-to-capital ratio in terms of potential limitations on leveraging opportunities for growth and capital investment.

Overall, the decreasing trend in the debt-to-capital ratio for F5 Networks Inc reflects a prudent approach to managing its capital structure and financial risk, potentially enhancing the company's financial stability and resilience.