Fortinet Inc (FTNT)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	992,300	991,800	991,300	990,900	990,400	989,900	989,400	988,900	988,400	988,000	987,500	987,000	0	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	-463,400	74,100	321,200	11,400	-281,600	-634,700	-392,900	217,700	781,700	1,118,100	1,050,200	980,800	856,000	713,200	566,700	557,400	1,342,400	1,217,900	1,139,400	1,058,100
Debt-to-capital ratio		1.88	0.93	0.76	0.99	1.40	2.79	1.66	0.82	0.56	0.47	0.48	0.50	0.00	0.00	0.00	0.00	0.00	0.00	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 fluctuated over the past eight quarters, ranging from 0.76 to 2.79. A higher debt-to-capital ratio implies a higher proportion of debt in the company's capital structure.

In Q4 2023, the ratio is 1.88, indicating that around 65% of the company's capital is financed by debt. This is a significant increase compared to the previous quarter, where the ratio was 0.93, suggesting a rapid accumulation of debt relative to capital.

The highest debt-to-capital ratio of 2.79 was observed in Q3 2022, which may have signaled potential financial risk due to excessive leverage. Conversely, the lowest ratio of 0.76 in Q2 2023 reflected a more conservative capital structure with less reliance on debt financing.

Overall, the fluctuation in Fortinet Inc's debt-to-capital ratio suggests varying levels of leverage and financial risk management over the analyzed period. Investors and stakeholders should closely monitor these changes to assess the company's financial stability and debt management strategies.