Fortinet Inc (FTNT)

Debt-to-equity ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,493,800	908,100	288,200	-137,500	-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	543,900	536,300
Debt-to-equity ratio		0.00	0.00	0.00	—	—	0.00	0.00	0.00	—	—	—	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,493,800K
= 0.00

The debt-to-equity ratio for Fortinet Inc has consistently been reported as 0.00 for the periods from March 31, 2020, to June 30, 2024, with the exception of the missing data marked as "—" for the quarters ending in June 30, 2022, September 30, 2022, December 31, 2022, and December 31, 2023.

A debt-to-equity ratio of 0.00 indicates that the company has no debt or a negligible amount of debt relative to its equity. This can suggest that Fortinet Inc relies more on equity financing rather than debt financing to fund its operations and investments. It also signifies a strong financial position as the company is not burdened with high levels of debt, which can be positive for investors and creditors.

However, it's important to note that while a low debt-to-equity ratio is generally considered favorable, excessively low ratios may also indicate that the company is not utilizing leverage efficiently to potentially maximize returns for shareholders. Additionally, the absence of debt could mean the company is missing out on potential tax advantages associated with debt financing.

Overall, Fortinet Inc's consistent low debt-to-equity ratio reflects a conservative financial strategy that prioritizes equity financing over debt and signals financial stability and strength.