Analysis of Debt
Total Debt (Carrying Amount)
Fortinet Inc., balance sheet: debt
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Long-term debt | 990,400) | 988,400) | —) | —) | —) | |
| Total long-term debt (carrying amount) | 990,400) | 988,400) | —) | —) | —) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
An analysis of the carrying amount of long-term debt reveals a significant shift in the capital structure beginning in 2021. Following a three-year period from 2018 through 2020 with no recorded long-term debt, the organization transitioned to a leveraged financial position.
- Debt Initiation
- As of December 31, 2021, total long-term debt was established at 988,400 thousand US dollars, marking a departure from the previously debt-free long-term balance sheet.
- Debt Stability and Trend
- Between 2021 and 2022, the carrying amount of long-term debt remained nearly constant, with a marginal increase of 2,000 thousand US dollars, bringing the total to 990,400 thousand US dollars by December 31, 2022. This represents a negligible growth rate of approximately 0.2%, indicating that the debt level was maintained at a stable plateau following the initial issuance.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Total long-term debt (fair value) | 829,500) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.84 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 1.80%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 1.30% | 500,000) | 6,500) | |
| 2.30% | 500,000) | 11,500) | |
| Total | 1,000,000) | 18,000) | |
| 1.80% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 18,000 ÷ 1,000,000 = 1.80%