Fortinet Inc (FTNT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.13 | 0.13 | 0.15 | 0.16 | 0.19 | 0.19 | 0.17 | 0.17 | 0.17 | 0.18 | 0.19 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 1.88 | 0.93 | 0.76 | 0.99 | 1.40 | 2.79 | 1.66 | 0.82 | 0.56 | 0.47 | 0.48 | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 13.38 | 3.09 | 86.92 | — | — | — | 4.54 | 1.26 | 0.88 | 0.94 | 1.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Fortinet Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.
The Debt-to-assets ratio decreased steadily from 0.16 in Q4 2022 to 0.14 in Q4 2023, indicating a lower proportion of debt relative to total assets, which is a positive trend.
The Debt-to-capital ratio fluctuated over the quarters, with a notable decrease from 2.79 in Q3 2022 to 0.93 in Q3 2023. This suggests that the company used less debt in its capital structure to finance its operations.
The Debt-to-equity ratio showed significant volatility, with the highest ratio of 86.92 in Q1 2023, indicating high reliance on debt to finance operations compared to equity. However, the ratio dropped to 13.38 in Q2 2023, showing some improvement in the mix of debt and equity funding.
The Financial leverage ratio was particularly volatile, with a massive spike to 599.32 in Q1 2023, indicating high leverage and financial risk. The ratio decreased significantly in subsequent quarters, reaching 100.94 in Q3 2023, showing some progress in reducing financial risk.
Overall, the decreasing trends in Debt-to-assets and Debt-to-capital ratios, along with fluctuations in Debt-to-equity and Financial leverage ratios, suggest some improvements in Fortinet Inc's solvency position. However, ongoing monitoring of these ratios is crucial to ensure sustainable long-term financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 62.50 | 61.12 | 60.62 | 56.50 | 50.34 | 43.66 | 37.61 | 35.91 | 42.67 | 57.72 | 98.33 | 418.85 | 58.75 | 25.70 | 15.18 | 9.99 | 8.20 | 7.52 | 7.41 | 7.84 |
Based on the available data, Fortinet Inc's interest coverage ratio has shown a significant improvement over the past quarters. In Q4 2022, the interest coverage ratio was exceptionally high at 1,608.33 times, indicating the company's strong ability to cover its interest expenses with its operating income. This substantial increase from the previous quarter reflects a positive trend in the company's financial performance.
In Q3 and Q2 2022, the interest coverage ratios were 92.18 times and 57.90 times, respectively, which also demonstrate Fortinet's healthy financial position and capacity to meet its interest obligations comfortably. The ratio continued to improve in Q1 2022, reaching 49.75 times.
However, it is noteworthy that interest coverage data for Q1-Q3 2023 is not available, making it challenging to assess the recent trend. Without this information, it is difficult to provide a complete picture of Fortinet Inc's current ability to cover its interest expenses.