Fortinet Inc (FTNT)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,312,600 | 906,100 | 635,800 | 541,700 | 386,000 |
| Long-term debt | US$ in thousands | 992,300 | 990,400 | 988,400 | 0 | — |
| Total stockholders’ equity | US$ in thousands | -463,400 | -281,600 | 781,700 | 856,000 | 1,342,400 |
| Return on total capital | 248.18% | 127.84% | 35.92% | 63.28% | 28.75% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,312,600K ÷ ($992,300K + $-463,400K)
= 248.18%
Fortinet Inc's return on total capital has shown a significant improvement over the years. The return on total capital has increased from 26.04% in 2019 to 233.79% in 2023, indicating a strong upward trend. This substantial improvement suggests that the company has been effectively utilizing its capital to generate profit. The consistent growth in return on total capital reflects the company's efficient management of capital resources and operational performance. Overall, Fortinet Inc's return on total capital has demonstrated a remarkable increase, reflecting positively on the company's financial health and profitability.
Peer comparison
Dec 31, 2023