Fortinet Inc (FTNT)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	5,955,800	5,710,800	5,537,300	5,395,800	5,304,800	5,172,700	4,987,600	4,724,900	4,417,400	4,098,000	3,815,700	3,586,700	3,342,200	3,126,600	2,910,500	2,724,900	2,591,500	2,457,900	2,354,300	2,260,500
Total current assets	US$ in thousands	5,971,500	5,220,600	4,919,300	4,559,700	4,428,300	4,752,700	4,878,100	4,358,700	3,810,400	2,982,200	2,952,900	3,208,300	3,600,600	3,963,500	3,908,200	3,781,200	2,740,400	2,384,600	2,208,700	2,035,300
Total current liabilities	US$ in thousands	4,060,700	3,883,900	3,725,300	3,800,400	3,719,000	3,649,000	3,500,600	3,261,800	3,078,400	2,779,600	2,634,900	2,510,500	2,318,100	2,198,000	1,998,500	1,879,700	1,829,500	1,645,600	1,611,900	1,543,000
Working capital turnover		3.12	4.27	4.64	7.11	7.48	4.69	3.62	4.31	6.03	20.23	12.00	5.14	2.61	1.77	1.52	1.43	2.84	3.33	3.94	4.59

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,955,800K ÷ ($5,971,500K – $4,060,700K)
= 3.12

The working capital turnover for Fortinet Inc has shown fluctuations over the given periods. The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio generally suggests more effective utilization of working capital.

From March 31, 2020, to June 30, 2022, Fortinet Inc's working capital turnover increased significantly from 4.59 to 12.00, indicating an improvement in the company's ability to generate sales from its working capital. This sharp increase may imply better inventory management or faster collection of accounts receivable during this period.

However, from September 30, 2022, to December 31, 2024, the working capital turnover ratio fluctuated, ranging from a high of 20.23 to a low of 3.12. These fluctuations could be a result of changes in the company's operating cycle, sales patterns, or management of current assets and liabilities.

Overall, while Fortinet Inc's working capital turnover ratio has shown variations, it is important to assess the trend over a longer period to gain a deeper understanding of the company's operational efficiency in utilizing its working capital.