F5 Networks, Inc (Nasdaq: Ffiv) Is A Company Located In

1495 WordsApr 10, 20176 Pages
F5 Networks, INC (NASDAQ: FFIV) is a company located in Seattle, Washington which has positioned itself as a market leader in Application Delivery in the U.S. and across the world. F5 provide companies with products and services that secure their Internet Protocol traffic and infrastructure storage (Forbes, 1). Some of F5’s most popular products include the Local Traffic Manager (LTM), Application Security Manager, Access Policy Manager, Advanced Firewall Manager, Application Acceleration Manager, IP Intelligence (IPI), WebSafe and BIG-IP DNS. F5 sells primarily through distributors, systems integrators and resellers. Their clients include businesses, consumer brands and government entities. Its primary markets include North America…show more content…
Even though the company showcased lower than expected revenue, the company remains profitable which can be measured with the Return on Assets (ROA) ratio. The software/infrastructure industry has an average ROA of 8.18% compared to F5’s ROA of 15.9%. This indicates that for each dollar invested in assets, the company generates on average 15.9 cents in profit. The Return on Sales (ROS) of a company allows investors to see how much profit the company is generating per dollar of sales. F5’s ROS is 18.3% which means that they earn 18.3 cents for every revenue dollar resulted in profit. F5’s asset turnover is 0.865 compared to the industry’s average of 0.41 which dictates that they generate 0.865 in revenue for every dollar invested in assets. In order to do an even deeper analysis for F5, I looked at the Gross Profit Margin (GP %) and found that F5’s Gross Margin is 83.33% compared to the industry’s average of 63.73 percent. This means F5 earns 83 cents on the dollar in gross margin. When analyzing a company, looking at its liquidity is important. The current ratio for F5 is 1.53 which means that they have enough current assets to cover current liabilities. When investors are looking for companies to invest in, they want to know the company’s solvency. In order to calculate a company’s ability to pay back long term debt when due, we use the debt ratio. F5’s debt ratio is 48.6% which means that they are relying more on stock holders’ equity

More about F5 Networks, Inc (Nasdaq: Ffiv) Is A Company Located In

Open Document