Fortinet Inc (FTNT)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	5,971,500	4,428,300	3,810,400	3,600,600	2,740,400
Total current liabilities	US$ in thousands	4,060,700	3,719,000	3,078,400	2,318,100	1,829,500
Current ratio		1.47	1.19	1.24	1.55	1.50

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,971,500K ÷ $4,060,700K
= 1.47

The current ratio of Fortinet Inc has shown some fluctuations over the past five years. As of December 31, 2020, the current ratio was 1.50, indicating that the company had $1.50 in current assets for every $1 of current liabilities.

Subsequently, the ratio increased slightly to 1.55 by December 31, 2021, suggesting a slightly improved liquidity position. However, there was a decline in the current ratio to 1.24 by December 31, 2022, indicating a potential strain on the company's ability to meet its short-term obligations.

The downward trend continued as of December 31, 2023, with the current ratio dropping further to 1.19, signaling a decrease in liquidity and raising concerns about the company's short-term financial health.

Despite the decline, there was a partial recovery by December 31, 2024, with the current ratio improving to 1.47. Overall, while the current ratio of Fortinet Inc has experienced fluctuations, it is essential for the company to maintain a healthy current ratio above 1 to ensure it can meet its short-term liabilities effectively.