Fortinet Inc (FTNT)

Receivables 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
Receivables	US$ in thousands	1,402,000	1,261,700	807,700	720,000	544,300
Receivables turnover		3.73	3.42	4.09	3.60	3.95

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,230,300K ÷ $1,402,000K
= 3.73

Fortinet Inc's receivables turnover ratio has fluctuated over the past five years, ranging from a low of 3.50 in 2022 to a high of 4.14 in 2021. The receivables turnover ratio indicates how efficiently the company is able to collect payments from its customers. A higher ratio suggests that the company is collecting its accounts receivable more quickly, which is generally favorable.

In 2023, the receivables turnover ratio stood at 3.78, which indicates that Fortinet Inc collected its accounts receivable approximately 3.78 times during the year. Although the ratio has improved from the previous year, it still lags behind the peak ratio reached in 2021. It is important for the company to continue monitoring and managing its accounts receivable effectively to ensure timely collections and maintain healthy cash flows.

Overall, Fortinet Inc's receivables turnover ratio demonstrates a moderate efficiency in collecting payments from customers, but there may be opportunities for further improvement to enhance liquidity and financial performance.