Fortinet Inc (FTNT)

Quick 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	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
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Quick 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

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

The quick ratio of Fortinet Inc over the reported period has fluctuated, indicating variability in its ability to meet short-term obligations with its most liquid assets. The quick ratio was below 1 in certain quarters, meaning the company's quick assets (such as cash, marketable securities, and receivables) were insufficient to cover current liabilities without relying on inventory.

It is noteworthy that the quick ratio improved from March 31, 2021, to September 30, 2021, peaking at 1.56, indicating a strengthening liquidity position during this period. However, starting from December 31, 2021, the quick ratio began to decline steadily, hitting its lowest point of 0.62 on September 30, 2022. This downward trend suggests potential challenges in the company's ability to quickly convert assets into cash to meet short-term obligations during that period.

While there was a slight recovery in the quick ratio in the following quarters, it remained below 1, indicating the company may have faced liquidity constraints. The quick ratio increased to 1.00 by December 31, 2024, implying that the company had just enough liquid assets to cover its current liabilities at the end of the reporting period.

In conclusion, Fortinet Inc's quick ratio exhibited fluctuations over the analyzed period, reflecting varying levels of liquidity and the company's ability to manage short-term financial obligations. Investors and stakeholders should continue monitoring the trend of the quick ratio to assess Fortinet Inc's liquidity position accurately.