Fortinet Inc (FTNT)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		1.88	1.40	0.56	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $992,300K ÷ ($992,300K + $-463,400K)
= 1.88

The debt-to-capital ratio for Fortinet Inc has increased steadily over the past five years, reaching 1.88 at the end of 2023 from 1.40 at the end of 2022, indicating a higher reliance on debt compared to capital for financing its operations and investments. This upward trend suggests that the company has been taking on more debt relative to its total capital structure. The significant jump from 0.56 in 2021 to 1.40 in 2022 and further to 1.88 in 2023 may indicate a deliberate strategic shift towards leveraging debt to fund growth or operations. It is worth further investigation to determine the reasons behind this increase in the debt-to-capital ratio and whether it aligns with the company's overall financial health and risk management strategy.