Fortinet Inc (FTNT)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,798,800	1,241,100	973,500	643,300	491,600
Interest expense	US$ in thousands	20,000	21,000	18,000	14,900	50,100
Interest coverage		89.94	59.10	54.08	43.17	9.81

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,798,800K ÷ $20,000K
= 89.94

Certainly. The interest coverage ratio of Fortinet Inc has been improving consistently over the past five years. Starting at 9.81 in December 2020, the ratio increased significantly to 43.17 by December 2021. This positive trend continued with further improvements to 54.08 in December 2022, 59.10 in December 2023, and reaching a high of 89.94 by December 2024.

The consistent increase in the interest coverage ratio is a positive indicator of the company's ability to meet its interest obligations with its earnings. It suggests that Fortinet Inc has a strong ability to generate earnings relative to its interest payments, which is a crucial aspect for creditors and investors evaluating the company's financial health and risk. This indicates a healthy financial position and a reduced risk of potential financial distress related to debt obligations.