Fortinet Inc (FTNT)

Quick ratio

		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	US$ in thousands	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	1,222,500	1,175,500	1,022,100	1,216,900
Short-term investments	US$ in thousands	1,042,500	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	843,100	764,800	808,100	584,900
Receivables	US$ in thousands	1,402,000	1,013,800	1,078,800	1,087,200	1,261,700	963,200	919,500	790,400	807,700	604,900	584,600	637,300	720,000	546,600	498,700	474,700	544,300	384,100	403,100	381,000
Total current liabilities	US$ in thousands	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	1,455,800	1,341,900	1,293,700	1,254,300
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,397,900K + $1,042,500K + $1,402,000K) ÷ $3,719,000K
= 1.03

The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term obligations with its most liquid assets. Fortinet Inc's quick ratio has shown varying trends over the past eight quarters.

In Q4 2023, the quick ratio was 1.06, indicating that the company had $1.06 in liquid assets for every $1 of current liabilities. This ratio decreased from the previous quarter, suggesting a potential slight decline in liquidity.

Compared to Q4 2022, when the quick ratio was 1.15, the current liquidity position is slightly weaker. However, the company's quick ratios in Q3 2023 and Q2 2023 were higher at 1.17 and 1.29, respectively, indicating better short-term liquidity.

Overall, Fortinet Inc's quick ratio has generally been above 1 in recent quarters, indicating that the company has had sufficient liquid assets to cover its short-term obligations. It is essential for analysts to continue monitoring future quarterly trends to assess the company's liquidity position accurately.