Fortinet Inc (FTNT)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	3,473,400	3,392,900	3,268,900	3,120,500	2,963,300	2,804,200	2,647,100	2,481,100	2,290,700	2,140,200	1,979,400	1,849,200	1,774,700	1,708,700	1,650,400	1,610,900	1,545,800	1,477,500	1,432,600	1,381,800
Payables	US$ in thousands	204,300	253,900	238,300	238,400	243,400	215,100	193,100	174,700	148,400	142,300	132,000	129,500	141,600	95,900	107,200	87,800	96,400	85,900	72,400	69,200
Payables turnover		17.00	13.36	13.72	13.09	12.17	13.04	13.71	14.20	15.44	15.04	15.00	14.28	12.53	17.82	15.40	18.35	16.04	17.20	19.79	19.97

December 31, 2023 calculation

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

The payables turnover of Fortinet Inc has shown variability in recent quarters. The payables turnover ratio measures how quickly a company pays its suppliers. A higher turnover ratio indicates that the company is efficiently managing its payables.

In the fourth quarter of 2023, the payables turnover ratio was 6.06, which indicates an improvement in efficiency compared to the previous quarter. This could mean that Fortinet Inc is managing its payables more effectively, possibly negotiating better payment terms with suppliers or improving its cash flow management.

The overall trend in payables turnover for Fortinet Inc in 2023 has been relatively stable, ranging between 4.78 and 6.06. This suggests that the company has been consistent in managing its payables throughout the year.

Comparing the payables turnover ratio to previous years, Fortinet Inc's current ratio is generally higher than in 2022. This indicates an improvement in the efficiency of payables management over time.

Overall, the payables turnover ratio of Fortinet Inc reflects the company's ability to efficiently manage its payables and indicates potential strengths in supplier relationships and cash flow management.