F5 Networks Inc (FFIV)

Financial leverage ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total assets	US$ in thousands	5,613,000	5,248,330	5,276,190	4,997,280	4,677,920
Total stockholders’ equity	US$ in thousands	3,129,380	2,800,230	2,468,980	2,360,210	2,232,270
Financial leverage ratio		1.79	1.87	2.14	2.12	2.10

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,613,000K ÷ $3,129,380K
= 1.79

The financial leverage ratio of F5 Networks Inc has been fluctuating over the past five years. It decreased from 2.10 in 2020 to 2.12 in 2021 before declining further to 2.14 in 2022. However, the trend reversed in 2023 and 2024 with the ratio dropping to 1.87 and then to 1.79, respectively.

A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. The decreasing trend from 2022 to 2024 suggests that F5 Networks Inc has been reducing its reliance on debt to finance its operations, which could be a positive sign for the company's financial stability and risk management.

However, it is essential to consider the industry norms and the company's specific circumstances when interpreting this ratio. Overall, the decreasing trend in the financial leverage ratio of F5 Networks Inc over the past three years indicates a potential improvement in its financial structure and a reduced level of financial risk.