Fortinet Inc (FTNT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 80.56% | 79.71% | 78.09% | 77.13% | 76.68% | 76.44% | 76.26% | 75.90% | 75.44% | 75.21% | 75.26% | 75.46% | 76.57% | 76.92% | 77.68% | 78.06% | 78.01% | 77.89% | 77.56% | 76.93% |
| Operating profit margin | 30.24% | 28.23% | 26.09% | 23.86% | 23.40% | 23.46% | 23.57% | 23.11% | 21.95% | 20.17% | 19.07% | 18.95% | 19.46% | 19.35% | 19.43% | 19.62% | 20.41% | 19.44% | 19.16% | 18.12% |
| Pretax margin | 34.56% | 32.49% | 28.12% | 25.72% | 25.14% | 24.87% | 24.52% | 23.45% | 21.63% | 19.39% | 17.99% | 18.06% | 18.80% | 18.96% | 19.40% | 19.86% | 20.79% | 20.13% | 20.04% | 19.29% |
| Net profit margin | 29.30% | 26.79% | 23.71% | 22.23% | 21.64% | 22.25% | 21.24% | 20.46% | 19.41% | 18.12% | 17.66% | 17.79% | 18.16% | 17.73% | 17.69% | 18.02% | 18.85% | 18.59% | 17.58% | 16.49% |
Fortinet Inc has shown consistent improvement in its profitability margins over the years. The Gross Profit Margin has been on an upward trend, starting at around 76% in early 2020 and reaching over 80% by the end of 2024. This indicates the company's ability to efficiently control its production costs and generate higher profits from its sales.
The Operating Profit Margin has also increased steadily, signifying the company's effective management of its operating expenses. The margin started at around 18% in 2020 and surged to above 30% by the end of 2024, showing robust operational efficiency and profitability.
The Pretax Margin, reflecting the company's profitability before taxes, exhibited a similar positive trend, climbing from around 20% in 2020 to over 30% by the end of 2024. This demonstrates Fortinet Inc's strong financial performance and ability to generate higher profits relative to its total revenue.
Lastly, the Net Profit Margin, which indicates the company's overall profitability after all expenses, showed steady growth from approximately 16% in early 2020 to nearly 30% by the end of 2024. This highlights Fortinet Inc's ability to effectively manage its costs and generate increased earnings for its shareholders.
Overall, Fortinet Inc has demonstrated consistent improvement in its profitability margins, reflecting a well-managed financial position and sustained growth in earnings over the years.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.45% | 18.22% | 17.94% | 16.81% | 17.10% | 16.22% | 15.71% | 15.98% | 15.57% | 15.49% | 13.74% | 12.03% | 10.99% | 10.13% | 10.17% | 10.12% | 13.08% | 13.33% | 13.54% | 12.77% |
| Return on assets (ROA) | 17.88% | 17.28% | 16.30% | 15.65% | 15.81% | 15.39% | 14.15% | 14.15% | 13.77% | 13.92% | 12.73% | 11.29% | 10.25% | 9.29% | 9.26% | 9.30% | 12.08% | 12.74% | 12.42% | 11.62% |
| Return on total capital | 131.24% | 195.10% | 511.28% | — | — | 1,763.02% | 386.80% | 9,880.70% | — | — | — | 305.83% | 82.13% | 53.52% | 53.60% | 53.94% | 57.09% | 61.54% | 75.95% | 69.49% |
| Return on equity (ROE) | 116.83% | 168.47% | 455.55% | — | — | 1,552.90% | 329.83% | 8,478.95% | — | — | — | 293.06% | 77.63% | 49.59% | 49.02% | 50.07% | 57.07% | 64.08% | 76.08% | 69.49% |
Based on the provided data, let's analyze the profitability ratios of Fortinet Inc over the years:
1. Operating Return on Assets (Operating ROA):
- Fortinet Inc's Operating ROA has been consistently positive and shows an increasing trend from 12.77% in March 2020 to 18.45% in December 2024. This indicates the company's ability to generate operating profits relative to its total assets.
2. Return on Assets (ROA):
- The ROA for Fortinet Inc also demonstrates a positive trend, starting at 11.62% in March 2020 and reaching 17.88% in December 2024. This ratio indicates the company's efficiency in utilizing its assets to generate profits.
3. Return on Total Capital:
- Fortinet Inc's Return on Total Capital experienced significant fluctuations over the years, with a sharp increase in March 2021 to 9,880.70% followed by fluctuations and a decrease by December 2024 to 131.24%. Such high volatility in this ratio could be due to changes in capital structure or certain financial events impacting the denominator.
4. Return on Equity (ROE):
- The ROE for Fortinet Inc also displayed substantial variability, with a peak in March 2023 at 8,478.95% before decreasing to 116.83% by December 2024. This ratio reflects the company's ability to generate profits from shareholders' equity.
Overall, Fortinet Inc has shown the ability to maintain positive profitability ratios over the years, indicating efficient utilization of assets and equity to generate returns for both shareholders and capital providers. However, the significant fluctuations in Return on Total Capital and Return on Equity highlight the importance of closely monitoring the company's capital structure and financial performance.