Fortinet Inc (FTNT)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	4,067,600	3,954,100	3,803,700	3,586,000	3,332,500	3,082,100	2,871,600	2,706,500	2,559,200	2,404,900	2,260,800	2,129,100	2,024,400	1,921,000	1,833,100	1,744,000	1,654,600	1,558,900	1,477,200	1,412,000
Revenue (ttm)	US$ in thousands	5,240,800	5,073,600	4,894,300	4,628,200	4,328,000	4,044,600	3,755,900	3,535,000	3,309,700	3,108,300	2,900,500	2,719,400	2,586,000	2,453,200	2,349,600	2,255,800	2,151,500	2,040,600	1,947,000	1,866,600
Gross profit margin		77.61%	77.93%	77.72%	77.48%	77.00%	76.20%	76.46%	76.56%	77.32%	77.37%	77.95%	78.29%	78.28%	78.31%	78.02%	77.31%	76.90%	76.39%	75.87%	75.65%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,067,600K ÷ $5,240,800K
= 77.61%

Fortinet Inc's gross profit margin has shown a relatively stable trend over the past eight quarters, ranging between 75.44% and 76.68%. The company's ability to generate profits from its core operations has remained strong, with an average gross profit margin of approximately 75.78% during this period. This indicates that Fortinet is effectively managing its production and distribution costs relative to its revenue, resulting in a consistently high level of gross profit.

The increasing trend in the most recent quarters suggests that Fortinet's efficiency in controlling cost of goods sold has improved. This could be attributed to various factors such as economies of scale, better supply chain management, or pricing strategies. Overall, a high and stable gross profit margin is a positive indicator of Fortinet's competitive positioning and operational effectiveness in the cybersecurity industry.