Fortinet Inc (FTNT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | — | — | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | — | — | 0.00 | 0.00 |
| Financial leverage ratio | 6.54 | — | — | 7.57 | 4.72 |
Fortinet Inc's solvency ratios, as indicated by the provided data, demonstrate a consistently strong financial position in terms of debt management and leverage. The Debt-to-assets ratio shows that the company has effectively financed its assets without relying significantly on debt throughout the years, with a consistent ratio of 0.00, indicating a low level of dependence on borrowed funds.
Likewise, the Debt-to-capital ratio and Debt-to-equity ratio also indicate a minimal level of debt relative to the company's capital structure, both showing a ratio of 0.00 in 2020, 2021, and 2024. This suggests that Fortinet Inc has maintained a healthy balance between equity and debt in financing its operations without overleveraging.
Moreover, the Financial leverage ratio, which measures the extent of a company's financial leverage, indicates a moderate level of leverage in 2020 (4.72) and 2024 (6.54). However, data for 2022 and 2023 is missing. This ratio provides insight into the proportion of assets financed by debt compared to equity. Fortinet Inc's leverage ratio appears to have fluctuated over the years but remained within reasonable levels, indicating a manageable level of debt relative to equity.
Overall, based on the data provided, Fortinet Inc appears to have maintained a prudent approach to managing its debt obligations and leverage, reflecting a solid solvency position and financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 89.94 | 59.10 | 54.08 | 43.17 | 9.81 |
Fortinet Inc's interest coverage has displayed a consistent improvement over the years, demonstrating the company's ability to meet its interest obligations comfortably. Starting at 9.81 in December 2020, the interest coverage ratio has steadily increased to 43.17 by December 2021, 54.08 by December 2022, 59.10 by December 2023, and finally, reaching a robust level of 89.94 by December 2024. This indicates that Fortinet Inc has ample earnings to cover its interest expenses, reflecting a strong financial position and sound management of debt obligations. The sustained growth in interest coverage ratio suggests that the company's profitability and cash flow generation have been improving, which bodes well for its long-term financial health and stability.