Fortinet Inc (FTNT)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	7,258,900	6,228,000	5,919,100	4,044,500	3,879,200
Total stockholders’ equity	US$ in thousands	-463,400	-281,600	781,700	856,000	1,342,400
Financial leverage ratio		—	—	7.57	4.72	2.89

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,258,900K ÷ $-463,400K
= —

The financial leverage ratio of Fortinet Inc has been steadily increasing over the past five years, indicating a trend towards higher financial leverage. The ratio was 2.94 at the end of 2019, increased to 4.72 by the end of 2020, further increased to 7.57 by the end of 2021, and the data for 2022 and 2023 are not available.

This trend suggests that Fortinet Inc has been increasingly relying on debt to finance its operations and investments. While higher leverage can amplify returns on equity in a favorable business environment, it also exposes the company to greater financial risk, especially during economic downturns or times of high interest rates.

It is important for investors and stakeholders to closely monitor Fortinet Inc's financial leverage ratio to assess its ability to meet its debt obligations and manage financial risk effectively. Additionally, the company's strategy for managing its leverage levels and the impact on its overall financial health should be considered in evaluating its long-term sustainability.