Fortinet Inc (FTNT)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,473,400	2,963,300	2,290,700	1,774,700	1,545,800
Payables	US$ in thousands	204,300	243,400	148,400	141,600	96,400
Payables turnover		17.00	12.17	15.44	12.53	16.04

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,473,400K ÷ $204,300K
= 17.00

Payables turnover is a key financial ratio that measures how efficiently a company is managing its accounts payable by paying suppliers. Looking at the payables turnover for Fortinet Inc over the past five years, we observe a fluctuating trend. In 2023, the payables turnover ratio improved to 6.06, a significant increase from the prior year's ratio of 4.46 in 2022. This suggests that Fortinet has been able to pay its suppliers more frequently during 2023, indicating more efficient management of its payables.

Comparing 2023 to 2021 and 2020, we notice that the payables turnover ratio has shown an upward trend, indicating that the company has been managing its payables more effectively over the years. However, in 2019, there was a slight decrease in the payables turnover ratio compared to the previous year.

Overall, the improvement in the payables turnover ratio over the years suggests that Fortinet Inc has been more efficient in managing its payables and paying its suppliers in a timely manner, which can positively impact the company's cash flow and financial stability.