Fortinet Inc (FTNT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,397,900	2,186,800	2,376,300	2,304,200	1,682,900	964,000	710,000	923,500	1,319,100	1,852,100	1,879,300	1,860,200	1,061,800	882,300	916,400	626,100	1,222,500	1,175,500	1,022,100	1,216,900
Short-term investments	US$ in thousands	1,042,500	982,000	937,200	574,900	528,100	766,400	1,044,900	1,218,100	1,232,600	1,268,900	1,233,900	1,076,700	775,500	774,400	610,500	775,200	843,100	764,800	808,100	584,900
Total current liabilities	US$ in thousands	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	1,455,800	1,341,900	1,293,700	1,254,300
Cash ratio		0.66	0.87	0.95	0.88	0.72	0.62	0.67	0.85	1.10	1.42	1.56	1.56	1.00	1.01	0.95	0.91	1.42	1.45	1.41	1.44

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,397,900K + $1,042,500K) ÷ $3,719,000K
= 0.66

The cash ratio of Fortinet Inc has shown fluctuations over the past eight quarters, ranging from 0.65 to 0.98. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

In Q2 and Q3 of 2023, the cash ratio was relatively high at 0.98 and 0.90 respectively, indicating a strong ability to cover short-term obligations with available cash. However, the cash ratio decreased slightly in Q4 2023 to 0.68, potentially indicating a decrease in the company's ability to cover short-term liabilities with cash alone.

Comparing the latest ratio to previous quarters, the Q4 2023 cash ratio of 0.68 is relatively lower than in Q1 and Q2 of 2023. It is also lower than the ratio reported in Q4 2022, hinting at a potential shift in liquidity management for Fortinet Inc.

Overall, while the cash ratio for Fortinet Inc has shown some variability, the company generally maintains a healthy level of liquidity over the analyzed quarters. Investors and stakeholders may want to monitor future trends to assess the company's ability to meet short-term obligations effectively.