Fortinet Inc (FTNT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		3.74	5.00	4.54	4.26	3.43	4.20	4.08	4.47	4.10	5.14	4.96	4.27	3.59	4.49	4.71	4.75	3.95	5.31	4.83	4.90
DSO	days	97.64	72.93	80.45	85.74	106.40	86.92	89.36	81.61	89.07	71.03	73.57	85.54	101.62	81.33	77.47	76.81	92.34	68.70	75.57	74.50

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.74
= 97.64

To analyze Fortinet Inc's Days Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the collection period for accounts receivable.

In Q4 2023, the DSO stood at 96.47 days, indicating the company took about 96.47 days on average to collect outstanding sales revenues. This figure reflects a significant increase from the previous quarter (Q3 2023) when the DSO was 71.54 days. The increase in DSO might suggest potential challenges in collecting receivables efficiently, thereby tying up cash flow in the business.

Comparing Q4 2023 to the same quarter of the previous year (Q4 2022), there has been an improvement in DSO, as it reduced from 104.25 days to 96.47 days. This improvement indicates a positive trend in collecting sales revenues more promptly, which could lead to better liquidity and cash flow management.

Overall, based on the historical trend, Fortinet Inc's DSO has exhibited fluctuations but generally remains within a range of around 70 to 100 days. It is essential for the company to closely monitor and manage its accounts receivable collection process to ensure timely receipt of revenues and strengthen its financial position.