Fortinet Inc (FTNT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.19 | 1.30 | 1.39 | 1.34 | 1.24 | 1.07 | 1.12 | 1.28 | 1.55 | 1.80 | 1.96 | 2.01 | 1.50 | 1.45 | 1.37 | 1.32 | 1.90 | 1.84 | 1.82 | 1.84 |
| Quick ratio | 1.03 | 1.15 | 1.25 | 1.22 | 1.13 | 0.97 | 1.01 | 1.17 | 1.45 | 1.70 | 1.85 | 1.90 | 1.40 | 1.34 | 1.26 | 1.22 | 1.79 | 1.73 | 1.73 | 1.74 |
| 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 |
Fortinet Inc's liquidity ratios show a relatively stable trend over the past eight quarters. The current ratio has ranged from 1.07 to 1.39, indicating that the company has generally been able to meet its short-term obligations with its current assets. The current ratio peaked in Q2 2023 at 1.39, reflecting a healthy liquidity position, while it dipped to its lowest at 1.07 in Q3 2022.
The quick ratio, which excludes inventory from current assets, has also remained stable, ranging from 1.00 to 1.29. This ratio provides a more conservative measure of liquidity, and the company has generally maintained a strong ability to cover its short-term liabilities with its most liquid assets. The quick ratio reached its highest level in Q2 2023 at 1.29.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has fluctuated between 0.65 and 0.98. This ratio reveals the company's ability to cover its current liabilities with its most liquid assets, with the highest level observed in Q2 2023 at 0.98.
Overall, Fortinet Inc's liquidity ratios suggest that the company has been managing its short-term obligations effectively and maintains a relatively stable liquidity position. Investors and creditors may find reassurance in the company's ability to meet its immediate payment obligations based on these liquidity measures.
See also:
Fortinet Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 127.12 | 95.91 | 95.86 | 93.26 | 109.02 | 87.01 | 89.65 | 83.07 | 93.44 | 77.10 | 76.85 | 89.51 | 101.25 | 89.57 | 81.63 | 80.71 | 97.42 | 71.99 | 78.96 | 79.57 |
The cash conversion cycle of Fortinet Inc has shown fluctuations over the past 8 quarters. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle may indicate inefficiencies in managing working capital and liquidity.
In Q4 2023, the cash conversion cycle increased to 179.22 days compared to the previous quarter at 135.51 days. This suggests that Fortinet's ability to convert its investments into cash slowed down during this period.
In Q3 2023, the cash conversion cycle decreased to 135.51 days from 121.49 days in Q2 2023. This indicates improved efficiency in converting assets into cash flows during this quarter.
Overall, Fortinet Inc has experienced fluctuations in its cash conversion cycle, with periods of both improvement and deterioration in efficiency. It is important for the company to closely monitor and manage its working capital to ensure optimal cash flow management and operational efficiency.