Fortinet Inc (FTNT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	2,875,900	2,489,300	2,203,200	1,926,300	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
Short-term investments	US$ in thousands	1,190,600	1,162,400	1,136,100	1,096,800	1,021,500	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
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
Cash ratio		1.00	0.94	0.90	0.80	0.65	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,875,900K + $1,190,600K) ÷ $4,060,700K
= 1.00

The cash ratio of Fortinet Inc has shown fluctuations over the past few years, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The cash ratio increased steadily from March 31, 2020, to March 31, 2021, reaching a peak of 1.56. This suggests that Fortinet had a strong ability to meet its short-term obligations with its available cash during this period.

However, from June 30, 2021, to June 30, 2024, the cash ratio fluctuated within a range of 0.67 to 0.95. This variability may indicate changes in Fortinet's cash position or short-term obligations during these periods.

The cash ratio dropped to its lowest point of 0.62 on September 30, 2022, indicating a potential strain on the company's ability to cover its short-term liabilities with its cash holdings at that time.

Overall, Fortinet's cash ratio has shown some volatility, underscoring the importance of closely monitoring the company's liquidity position to ensure it can meet its short-term financial obligations effectively.