Fortinet Inc (FTNT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		3.73	3.42	4.09	3.60	3.95
DSO	days	97.84	106.76	89.16	101.51	92.34

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.73
= 97.84

Fortinet Inc's Days Sales Outstanding (DSO) ratio measures how long it takes the company to collect payments from its customers. A higher DSO indicates that the company is taking longer to collect its accounts receivable, potentially facing liquidity issues or inefficiencies in managing its credit and collection policies.

Looking at the DSO trend for Fortinet Inc over the past five years, we observe fluctuations in the DSO ratio. In 2023, the DSO decreased to 96.47 days from 104.25 days in 2022, which may indicate an improvement in the company's ability to collect payments more efficiently. However, it is still higher than the DSO reported in 2021, which was 88.21 days.

Comparing the recent DSO to 2020 and 2019, where the DSO was 101.30 days and 92.14 days, respectively, we see that the company's DSO has also improved from those years. Yet, it is essential to note that the DSO ratio should be analyzed in conjunction with other financial ratios and operational metrics to get a comprehensive understanding of Fortinet Inc's overall financial health and efficiency in managing its accounts receivable.