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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. F5's annualized Net Income for the quarter that ended in Sep. 2024 was $661 Mil. F5's average Total Assets over the quarter that ended in Sep. 2024 was $5,514 Mil. Therefore, F5's annualized ROA % for the quarter that ended in Sep. 2024 was 11.99%.
The historical rank and industry rank for F5's ROA % or its related term are showing as below:
During the past 13 years, F5's highest ROA % was 17.85%. The lowest was 6.27%. And the median was 14.19%.
The historical data trend for F5's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
F5 Annual Data | |||||||||||||||||||||
Trend | Sep15 | Sep16 | Sep17 | Sep18 | Sep19 | Sep20 | Sep21 | Sep22 | Sep23 | Sep24 | |||||||||||
ROA % | Get a 7-Day Free Trial | 7.62 | 6.85 | 6.27 | 7.51 | 10.44 |
F5 Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
ROA % | Get a 7-Day Free Trial | 11.74 | 10.45 | 8.87 | 10.67 | 11.99 |
For the Software - Infrastructure subindustry, F5's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Software industry and Technology sector, F5's ROA % distribution charts can be found below:
* The bar in red indicates where F5's ROA % falls into.
F5's annualized ROA % for the fiscal year that ended in Sep. 2024 is calculated as:
ROA % | = | Net Income (A: Sep. 2024 ) | / | ( (Total Assets (A: Sep. 2023 ) | + | Total Assets (A: Sep. 2024 )) | / count ) |
= | 566.778 | / | ( (5248.333 | + | 5613.004) | / 2 ) | |
= | 566.778 | / | 5430.6685 | ||||
= | 10.44 % |
F5's annualized ROA % for the quarter that ended in Sep. 2024 is calculated as:
ROA % | = | Net Income (Q: Sep. 2024 ) | / | ( (Total Assets (Q: Jun. 2024 ) | + | Total Assets (Q: Sep. 2024 )) | / count ) |
= | 661.184 | / | ( (5414.45 | + | 5613.004) | / 2 ) | |
= | 661.184 | / | 5513.727 | ||||
= | 11.99 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Sep. 2024) net income data. ROA % is displayed in the 30-year financial page.
F5 (NAS:FFIV) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
ROA % | (Q: Sep. 2024 ) | ||
= | Net Income | / | Total Assets |
= | 661.184 | / | 5513.727 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (661.184 / 2986.696) | * | (2986.696 / 5513.727) |
= | Net Margin % | * | Asset Turnover |
= | 22.14 % | * | 0.5417 |
= | 11.99 % |
Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Thank you for viewing the detailed overview of F5's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Francis J. Pelzer | officer: EVP, Chief Financial Officer | CONCUR TECHNOLOGIES, INC., 18400 NE UNION HILL RD., REDMOND WA 98052 |
Alan Higginson | director | |
Francois Locoh-donou | director, officer: President, CEO & Director | C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. W., SEATTLE WA 98119 |
Chad Michael Whalen | officer: EVP, Worldwide Sales | C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119 |
Thomas Dean Fountain | officer: EVP and Chief Strategy Officer | C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119 |
Scot Frazier Rogers | officer: Interim General Counsel | C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119 |
Michael L Dreyer | director | C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119 |
Tami A. Erwin | director | 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036 |
Ana Maria White | officer: EVP and Chief HR Officer | C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119 |
Mika Yamamoto | officer: EVP, Chief Marketing Officer | 21300 VICTORY BLVD.,, 12TH FLOOR, WOODLAND HILLS CA 91367 |
Geng Lin | officer: EVP, Chief Technology Officer | C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119 |
Marianne Budnik | director | C/O ACME PACKET, INC., 100 CROSBY DRIVE, BEDFORD MA 01730 |
Phillips James Malcolm Jr | director | C/O F5, INC., 801 FIFTH AVE., SEATTLE WA 98104 |
Michael F Montoya | director | C/O F5 NETWORKS, INC., 801 FIFTH AVE., SEATTLE WA 98104 |
Deborah L Bevier | director | PO BOX 91258, BELLEVUE WA 98009 |
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