Fortinet Inc (FTNT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.56% | 76.68% | 75.44% | 76.57% | 78.03% |
| Operating profit margin | 30.28% | 23.40% | 21.95% | 19.46% | 20.50% |
| Pretax margin | 34.56% | 25.14% | 21.63% | 18.80% | 20.88% |
| Net profit margin | 29.30% | 21.64% | 19.41% | 18.16% | 18.83% |
Fortinet Inc's profitability ratios display a positive trend over the years evaluated. The Gross Profit Margin indicates a slight decrease from 78.03% in December 2020 to 75.44% in December 2022 but then steadily increases to reach 80.56% by December 2024, reflecting effective cost control and pricing strategies.
The Operating Profit Margin demonstrates a consistent improvement, rising from 20.50% in December 2020 to 30.28% by December 2024. This suggests that the company has effectively managed its operating expenses while increasing profitability from its core business operations.
The Pretax Margin shows fluctuations initially but registers a substantial increase from 21.63% in December 2022 to 34.56% by December 2024. This signifies that Fortinet Inc has improved its efficiency in generating profits before accounting for taxes, indicating operational effectiveness and potentially favorable tax strategies.
Finally, the Net Profit Margin exhibits a steady growth pattern, climbing from 18.83% in December 2020 to 29.30% by December 2024. This indicates that the company has been successful in controlling costs, managing taxes, and maximizing bottom-line profitability, reflecting positively on its overall financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.47% | 17.10% | 15.57% | 10.99% | 13.15% |
| Return on assets (ROA) | 17.88% | 15.81% | 13.77% | 10.25% | 12.08% |
| Return on total capital | 120.42% | — | — | 82.29% | 57.43% |
| Return on equity (ROE) | 116.83% | — | — | 77.63% | 57.07% |
Fortinet Inc's profitability ratios show a generally positive trend over the years.
1. Operating return on assets (Operating ROA) improved from 13.15% in 2020 to 18.47% in 2024, indicating the company's ability to generate operating profits from its assets has been consistently strong.
2. Return on assets (ROA) also increased from 12.08% in 2020 to 17.88% in 2024, reflecting the company's efficiency in generating profits relative to its total assets.
3. Return on total capital showed a significant improvement, jumping from 57.43% in 2020 to 120.42% in 2024. This suggests that Fortinet Inc has been effectively using both debt and equity to generate returns for its stakeholders.
4. Return on equity (ROE) saw a steady rise from 57.07% in 2020 to 116.83% in 2024, indicating the company's ability to generate strong returns on shareholders' equity over the years.
Overall, Fortinet Inc's profitability ratios demonstrate strong operational efficiency, effective utilization of assets and capital, and robust returns to its shareholders.