Fortinet Inc (FTNT)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		1.19	1.24	1.55	1.50	1.90

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,428,300K ÷ $3,719,000K
= 1.19

The current ratio of Fortinet Inc has shown a gradual decline over the past five years, from 1.88 in 2019 to 1.19 in 2023. This indicates a decreasing ability to cover its short-term obligations with its current assets. A current ratio above 1 signifies that the company has more current assets than current liabilities, demonstrating liquidity. However, the declining trend suggests a potential strain on the company's liquidity position. While a current ratio above 1 is generally considered healthy, a higher ratio provides a larger buffer for unexpected cash flow fluctuations. Fortinet Inc may need to closely monitor its liquidity position and take appropriate actions to maintain a healthy balance between current assets and current liabilities.