Fortinet Inc (FTNT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 77.77% | 77.26% | 77.40% | 78.20% | 77.02% |
| Operating profit margin | 23.73% | 22.48% | 19.67% | 20.54% | 16.31% |
| Pretax margin | 24.69% | 20.59% | 18.78% | 20.92% | 17.94% |
| Net profit margin | 21.95% | 19.87% | 18.35% | 18.87% | 15.42% |
Fortinet Inc's profitability ratios have shown generally positive trends over the past five years. The company's gross profit margin has remained relatively stable, hovering between 75% to 78% during this period, indicating strong control over production costs.
The operating profit margin has shown consistent improvement, increasing from 15.96% in 2019 to 23.31% in 2023. This indicates that Fortinet has been able to effectively manage its operating expenses and generate higher profits from its core business operations.
The pretax margin has fluctuated over the years but generally trended upwards, reaching 24.35% in 2023. This suggests that the company has been able to generate higher profits before taxes, reflecting improved operational efficiency and effective tax management strategies.
Fortinet's net profit margin has also shown a positive trajectory, increasing from 15.14% in 2019 to 21.64% in 2023. This indicates that the company has been successful in managing its overall expenses, including interest and tax obligations, resulting in higher profitability for shareholders.
Overall, Fortinet Inc's profitability ratios demonstrate a strong performance in terms of effectively managing costs, improving operational efficiency, and generating higher profits over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.10% | 15.57% | 10.99% | 13.15% | 9.05% |
| Return on assets (ROA) | 15.81% | 13.77% | 10.25% | 12.08% | 8.55% |
| Return on total capital | 248.18% | 127.84% | 35.92% | 63.28% | 28.75% |
| Return on equity (ROE) | — | — | 77.63% | 57.07% | 24.71% |
Fortinet Inc's profitability ratios have shown a positive trend over the past five years. Both Operating Return on Assets (Operating ROA) and Return on Assets (ROA) have been improving steadily, indicating that the company has been effectively utilizing its assets to generate operating profits and overall returns. This suggests a strong operational performance.
The Return on Total Capital has significantly increased over the years, indicating that the company has been efficient in generating returns from its total invested capital. This strong performance is a positive sign for investors and creditors as it shows the company's ability to generate profits relative to the total capital employed.
Return on Equity (ROE) has also demonstrated significant growth, indicating that the company has been able to effectively generate profits for its shareholders over the years. This suggests effective management of the company's equity to create value for its owners.
Overall, the profitability ratios reflect Fortinet Inc's ability to generate profits and returns for its stakeholders, showcasing a positive trajectory in financial performance over the past five years.