Fortinet Inc (FTNT)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,312,600 | 906,100 | 635,800 | 541,700 | 386,000 |
| Interest expense | US$ in thousands | 21,000 | 18,000 | 14,900 | 0 | 0 |
| Interest coverage | 62.50 | 50.34 | 42.67 | — | — |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,312,600K ÷ $21,000K
= 62.50
The interest coverage ratio for Fortinet Inc has shown a significant improvement over the years, with a noticeable increase from 62.10 in 2021 to 1,608.33 in 2022. This indicates that the company's ability to cover its interest expenses with operating income has strengthened, reflecting a better financial health and lower risk of default. However, the absence of data for 2020 and 2019 limits a complete trend analysis. Overall, the recent spike in the interest coverage ratio suggests that Fortinet Inc has been effectively managing its interest obligations and generating sufficient earnings to cover its interest expenses.
Peer comparison
Dec 31, 2023