F5 Networks Inc (FFIV)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	5,248,330	5,276,190	4,997,280	4,677,920	3,390,280
Total stockholders’ equity	US$ in thousands	2,800,230	2,468,980	2,360,210	2,232,270	1,761,500
Financial leverage ratio		1.87	2.14	2.12	2.10	1.92

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,248,330K ÷ $2,800,230K
= 1.87

The financial leverage ratio, also known as the debt-to-equity ratio, measures the extent to which a company relies on debt financing compared to equity. A lower financial leverage ratio indicates lower dependence on debt, while a higher ratio suggests higher leverage and potential higher financial risk.

Analyzing the financial leverage ratio of F5 Inc over the past five years reveals some interesting trends. In September 2023, the financial leverage ratio stood at 1.87, representing a decrease from the prior year. This suggests that F5 Inc reduced its reliance on debt financing in relation to equity, possibly indicating a more conservative capital structure or improved financial health.

Comparing this to the ratio of 2.14 in September 2022, it is evident that the company had a higher level of leverage in the previous year. This might have been a result of increased borrowing or a decrease in equity during that period.

Looking further back to September 2021 and September 2020, the financial leverage ratios were 2.12 and 2.10, respectively. These consistent ratios indicate that F5 Inc maintained a relatively stable level of leverage during those years.

In September 2019, the financial leverage ratio was 1.92, lower than subsequent years. This suggests that the company had a lower level of debt relative to equity at that time.

Overall, the trend in F5 Inc's financial leverage ratio indicates fluctuations in its leverage position over the years, with a decrease in 2023. This may be a reflection of the company's efforts to manage its capital structure and potentially reduce financial risk. However, further analysis of the company's debt and equity components is necessary to fully evaluate the implications of these trends on the overall financial health and risk profile of F5 Inc.