Fortinet Inc (FTNT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — | — | 0.00 | 0.00 | 0.00 | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — | — | 0.00 | 0.00 | 0.00 | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 6.54 | 9.75 | 27.94 | — | — | 100.94 | 23.31 | 599.32 | — | — | — | 25.96 | 7.57 | 5.34 | 5.29 | 5.39 | 4.72 | 5.03 | 6.12 | 5.98 |
Based on the provided data, Fortinet Inc has consistently maintained a strong solvency position as evidenced by its low debt-to-assets ratio, which has remained at 0.00 across all reported periods. This indicates that the company's level of debt relative to its total assets is minimal, reflecting a healthy balance sheet.
Similarly, Fortinet Inc has also exhibited a stable debt-to-equity ratio of 0.00 throughout most periods, suggesting that the company has been able to finance its operations primarily through equity rather than debt. A lower debt-to-equity ratio is typically considered favorable as it indicates lower financial risk and greater financial stability.
Moreover, the debt-to-capital ratio has been reported as 0.00 for the majority of the periods, indicating that the company has not relied heavily on debt to fund its operations relative to its total capital structure. This further supports the view of Fortinet Inc having a strong financial position in terms of solvency.
However, there are some fluctuations in the financial leverage ratio over the years. The ratio started at around 5-7 in the earlier periods but showed significant spikes in March 2022 and March 2023, reaching 599.32 and 27.94, respectively. These spikes may indicate higher financial risk and a potentially leveraged capital structure during those periods. Fortinet Inc managed to bring down the financial leverage ratio in the subsequent periods, with values declining to single digits, which is a positive sign.
Overall, Fortinet Inc's solvency ratios suggest a stable and healthy financial position with well-managed debt levels and a relatively conservative capital structure, although there were some fluctuations in the financial leverage ratio that may require further analysis to understand the underlying reasons.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Fortinet Inc's interest coverage ratio has shown a consistent upward trend over the past few years, indicating the company's improving ability to cover its interest obligations with its earnings before interest and taxes (EBIT). The interest coverage ratio increased from 8.98 in March 2020 to 98.02 in December 2024. This indicates that the company's earnings are significantly higher than its interest expenses, providing a comfortable margin of safety.
The gradual increase in the interest coverage ratio suggests that Fortinet Inc's financial health has strengthened over time, making it less vulnerable to changes in interest rates or economic downturns. As of December 2024, the interest coverage ratio of 98.02 reflects the company's strong financial position and ability to meet its debt obligations comfortably. Investors and creditors may view this trend positively as it signifies a low risk of default on debt payments due to the company's robust profitability.