Fortinet Inc (FTNT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,230,300	4,313,600	3,306,400	2,588,900	2,151,500
Property, plant and equipment	US$ in thousands	1,044,400	898,500	687,600	448,000	344,300
Fixed asset turnover		5.01	4.80	4.81	5.78	6.25

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,230,300K ÷ $1,044,400K
= 5.01

The fixed asset turnover ratio for Fortinet Inc has shown a decreasing trend over the past five years. From 2019 to 2021, the ratio declined from 6.26 to 4.86, indicating that the company's fixed assets were generating less revenue. However, there was a slight increase in 2022 to 4.92, followed by a further increase to 5.08 in 2023.

While the recent increases in the fixed asset turnover ratio suggest a potential improvement in the efficiency of utilizing fixed assets to generate revenue, it is important to monitor this ratio over time to assess the company's overall operational effectiveness and asset management. An increasing fixed asset turnover ratio generally indicates that the company is generating more revenue per dollar of investment in fixed assets, which can be a positive signal for investors and stakeholders.