Fortinet Inc (FTNT)

Financial leverage 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
Total assets	US$ in thousands	7,258,900	7,479,300	7,486,100	6,832,300	6,228,000	5,335,900	5,294,500	5,651,100	5,919,100	5,970,600	5,558,900	5,282,200	4,044,500	3,586,200	3,330,600	3,206,200	3,879,200	3,545,600	3,369,400	3,205,700
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
Financial leverage ratio		—	100.94	23.31	599.32	—	—	—	25.96	7.57	5.34	5.29	5.39	4.72	5.03	5.88	5.75	2.89	2.91	2.96	3.03

December 31, 2023 calculation

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

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. Fortinet Inc's financial leverage ratio has shown significant fluctuations over the past four quarters. In Q1 2023, the ratio was very high at 599.32, indicating that the company had a substantial amount of debt relative to its equity. This could suggest higher financial risk and potential concerns about its ability to meet debt obligations.

In Q3 2023, the financial leverage ratio decreased to 100.94, which is a more moderate level compared to Q1 2023. This reduction could indicate a decrease in the company's dependence on debt for funding its activities. However, it is essential to monitor the trend over time to assess the company's overall financial health and risk profile accurately.

In Q2 2023, the financial leverage ratio was 23.31, a relatively low level compared to the preceding quarters. This could suggest that Fortinet Inc had a more conservative debt structure during that period, potentially reducing its financial risk.

In Q1 2022, the financial leverage ratio was 25.96. This level was lower compared to Q1 2023 but higher than Q2 and Q3 2023. It indicates that the company's capital structure had a reasonable balance between debt and equity during that period.

Overall, Fortinet Inc's financial leverage ratio has displayed significant variability, highlighting the importance of closely monitoring the company's debt levels and their impact on its financial position and risk profile.