Fortinet Inc (FTNT)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,157,600	1,237,200	1,084,900	783,000	570,000
Inventory	US$ in thousands	315,500	484,800	264,600	175,800	139,800
Inventory turnover		3.67	2.55	4.10	4.45	4.08

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,157,600K ÷ $315,500K
= 3.67

Fortinet Inc's inventory turnover has fluctuated over the period from December 31, 2020, to December 31, 2024. In 2020, the inventory turnover was 4.08, showing that the company turned over its inventory approximately 4.08 times during the year. The ratio improved in 2021 to 4.45, indicating a more efficient management of inventory. However, there was a slight decrease in 2022 with a turnover of 4.10.

The company experienced a significant drop in inventory turnover in 2023 to 2.55, suggesting potential challenges in managing inventory levels efficiently or potential issues with sales. In 2024, there was a slight improvement as the inventory turnover increased to 3.67, but it still remained below the levels seen in 2021 and 2022.

Overall, Fortinet Inc's inventory turnover has shown mixed performance over the years, with fluctuations that may indicate varying efficiency in managing inventory levels and sales during the period analyzed.