Fortinet Inc (FTNT)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,960,400	1,771,700	1,473,500	1,341,900	1,317,900	1,306,400	1,242,400	1,126,400	973,500	812,600	704,700	665,800	642,000	598,400	562,900	529,000	488,700	438,900	413,100	372,700
Interest expense (ttm)	US$ in thousands	20,000	20,500	20,900	21,100	21,000	20,100	19,200	18,500	18,000	18,000	18,100	18,100	14,900	12,400	10,300	9,800	17,700	25,600	34,500	41,500
Interest coverage		98.02	86.42	70.50	63.60	62.76	65.00	64.71	60.89	54.08	45.14	38.93	36.78	43.09	48.26	54.65	53.98	27.61	17.14	11.97	8.98

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,960,400K ÷ $20,000K
= 98.02

Fortinet Inc's interest coverage ratio has displayed a positive trend over the past few years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has steadily increased from 8.98 in March 2020 to 98.02 in December 2024. This indicates a significant improvement in the company's capacity to cover interest expenses with its operating income.

The consistent upward trend in the interest coverage ratio suggests that Fortinet Inc's profitability and operational efficiency have been improving over the years. A higher interest coverage ratio is generally seen as a positive sign by investors and lenders, as it indicates a lower risk of default on interest payments.

As of December 31, 2024, Fortinet Inc's interest coverage ratio stands at 98.02, reflecting a strong financial position and a healthy ability to service its debt obligations. This suggests that the company has ample earnings to cover its interest expenses, which is essential for long-term financial stability and growth.