Fortinet Inc (FTNT)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,241,100 | 1,213,500 | 1,175,800 | 1,092,100 | 969,600 | 826,700 | 727,600 | 679,800 | 650,400 | 604,900 | 565,400 | 536,700 | 531,800 | 484,500 | 458,200 | 414,600 | 348,500 | 314,900 | 277,100 | 252,600 |
| Total assets | US$ in thousands | 7,258,900 | 7,479,300 | 7,486,100 | 6,832,300 | 6,228,000 | 5,335,900 | 5,294,500 | 5,651,100 | 5,919,100 | 5,970,600 | 5,558,900 | 5,282,200 | 4,044,500 | 3,586,200 | 3,330,600 | 3,206,200 | 3,879,200 | 3,545,600 | 3,369,400 | 3,205,700 |
| Operating ROA | 17.10% | 16.22% | 15.71% | 15.98% | 15.57% | 15.49% | 13.74% | 12.03% | 10.99% | 10.13% | 10.17% | 10.16% | 13.15% | 13.51% | 13.76% | 12.93% | 8.98% | 8.88% | 8.22% | 7.88% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,241,100K ÷ $7,258,900K
= 17.10%
Operating ROA measures the efficiency of Fortinet Inc in generating operating profits relative to its total assets. Over the past eight quarters, Fortinet Inc has shown a consistent improvement in its operating ROA, starting at 11.95% in Q1 2022 and reaching 17.03% in Q4 2023. This indicates that the company has been able to effectively utilize its assets to generate operating income.
The trend of increasing operating ROA suggests that Fortinet Inc has implemented measures to enhance operational efficiency and profitability. The steady growth in the ratio signals that the company's management has been successful in optimizing the utilization of its assets to generate higher operating returns over time.
Overall, Fortinet Inc's rising operating ROA reflects positively on the company's operational performance and ability to generate profits from its asset base. This trend indicates that Fortinet Inc is effectively managing its resources to drive profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2023