Fortinet Inc (FTNT)

Working capital 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
Total current assets	US$ in thousands	4,428,300	3,810,400	3,600,600	2,740,400	2,769,000
Total current liabilities	US$ in thousands	3,719,000	3,078,400	2,318,100	1,829,500	1,455,800
Working capital turnover		7.37	5.89	2.58	2.84	1.64

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,230,300K ÷ ($4,428,300K – $3,719,000K)
= 7.37

The working capital turnover ratio for Fortinet Inc has been showing a positive trend over the past five years, indicating an improvement in the efficiency of the company in utilizing its working capital to generate sales revenue. The ratio has increased from 1.66 in 2019 to 7.48 in 2023.

A higher working capital turnover ratio suggests that the company is able to convert its working capital investment into sales more frequently, which is a positive sign of efficient operations. This could be attributed to effective management of inventory, receivables, and payables.

Fortinet Inc's working capital turnover ratio of 7.48 in 2023 indicates that for every dollar of working capital invested, the company generated $7.48 in sales revenue. This signifies a strong ability to efficiently utilize its resources to drive revenue growth.

Overall, the increasing trend in the working capital turnover ratio reflects positively on Fortinet Inc's operational efficiency and effective management of its working capital components.