Fortinet Inc (FTNT)

Debt-to-equity 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-equity ratio		—	13.38	3.09	86.92	—	—	—	4.54	1.26	0.88	0.94	1.01	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $992,300K ÷ $-463,400K
= —

The debt-to-equity ratio for Fortinet Inc shows significant fluctuations over the past eight quarters. In Q1 2023, the ratio spiked to a high of 86.92, indicating a substantial reliance on debt financing relative to equity. This sudden increase could be a cause for concern as it may suggest potential financial risk and strain on the company's solvency. However, the ratio improved to 3.09 in Q2 2023, signaling a reduction in the company's debt levels compared to equity.

The absence of data for some quarters, such as Q4 2023 and Q4 2022, hinders a complete trend analysis of the debt-to-equity ratio. Overall, a lower debt-to-equity ratio is typically viewed favorably by investors and creditors as it signifies a healthier financial structure and lower financial risk. Fortinet Inc should aim to maintain a balanced ratio to ensure sustainable growth and financial stability in the long term.