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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2009
- Return on Equity (ROE) since 2009
- Current Ratio since 2009
- Price to Book Value (P/BV) since 2009
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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Fortinet Inc., adjustment to net income attributable to Fortinet, Inc.
US$ in thousands
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).
- Net Income Trends
- The reported net income attributable to the company demonstrates a consistent upward trajectory over the five-year period. Starting from approximately $332.2 million in 2018, the value slightly decreased to $326.5 million in 2019 but recovered in 2020 with a significant increase to around $488.5 million. This positive momentum continued in 2021 and 2022, reaching approximately $606.8 million and $857.3 million respectively. The overall pattern indicates strong growth in profitability.
- The adjusted net income follows a similar trend, closely tracking the reported figures. Beginning at $332.2 million in 2018, adjusted net income dipped marginally to $329.0 million in 2019, then increased substantially to $488.3 million in 2020. It continued to grow in 2021 and 2022, hitting approximately $603.3 million and $851.1 million respectively. The minimal difference between reported and adjusted net income across all years suggests relatively stable one-time adjustments or exceptional items.
- Summary of Financial Performance
- The fiscal data reveals robust improvement in the company's net profitability over the analyzed period. The strong year-over-year growth beginning in 2020 signals effective operational management and possibly increased revenue or improved cost control measures. The close alignment between reported and adjusted net income underscores consistent core earnings without significant distortive accounting adjustments. The considerable increase in net income in the last two years may indicate expanding market share or successful strategic initiatives.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Fortinet Inc., adjusted profitability ratios
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).
- Net Profit Margin Trends
- The reported net profit margin experienced a decline from 18.44% in 2018 to 15.14% in 2019, followed by a recovery to 18.83% in 2020. There was a slight decrease to 18.16% in 2021, but the margin rose again to 19.41% in 2022. The adjusted net profit margin shows a similar pattern, with minor variations, indicating consistency between reported and adjusted data over the period.
- Return on Equity (ROE) Trends
- Reported ROE declined from 32.88% in 2018 to 24.7% in 2019, then sharply increased to 57.07% in 2020 and further to 77.63% in 2021. The adjusted ROE closely follows this pattern with a slight variation in values. Data for 2022 is unavailable, preventing further analysis for that year. The substantial increase between 2019 and 2021 suggests significant improvements in equity efficiency or profitability.
- Return on Assets (ROA) Trends
- The reported ROA decreased from 10.79% in 2018 to 8.4% in 2019, increased to 12.08% in 2020, declined slightly to 10.25% in 2021, then increased significantly to 13.77% in 2022. Adjusted ROA values mirror the reported figures closely. These fluctuations indicate variability in asset utilization efficiency, with a positive trend noted in the final year of data.
- Overall Insights
- The financial performance metrics reflect volatility in the early years with recoveries and improvements thereafter. Margins and returns show overall positive trends by the end of the period, particularly in 2022 for net profit margin and ROA. The sizable increase in ROE during 2020 and 2021 suggests enhanced profitability relative to shareholder equity, although the absence of 2022 data limits full trend analysis for that metric. Adjusted metrics closely align with reported figures, confirming the reliability of the reported results despite adjustments.
Fortinet Inc., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
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).
2022 Calculations
1 Net profit margin = 100 × Net income attributable to Fortinet, Inc. ÷ Revenue
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income attributable to Fortinet, Inc. ÷ Revenue
= 100 × ÷ =
- Net Income Trends
- The reported net income attributable to the company demonstrated a consistent upward trajectory from 2018 through 2022. Beginning at $332.2 million in 2018, net income slightly decreased in 2019 but then increased substantially in the subsequent years, reaching $857.3 million by 2022. This represents more than a twofold increase over the five-year period. The adjusted net income figures closely mirror this pattern, indicating minimal adjustments necessary to the reported figures and suggesting reliability and consistency in the company’s earnings reporting.
- Profit Margin Analysis
- The reported net profit margin exhibited some fluctuations over the period analyzed. Starting at 18.44% in 2018, the margin declined in 2019 to 15.14%, representing a notable dip in profitability relative to revenue. However, margins rebounded in 2020 to 18.83% and remained relatively stable thereafter, ending at 19.41% in 2022, which is the highest margin observed during this period. Adjusted net profit margins follow a similar pattern, slightly higher than reported margins each year, ranging from 18.44% down to 15.26% in 2019 and increasing to 19.27% by 2022. This suggests an overall improvement in operating efficiency or cost management over time.
- Comparative Observations
- The close alignment of reported and adjusted figures for both net income and profit margins indicates that the adjustments made for investment purposes did not substantially alter the underlying financial performance profile. Stability and improvement in profit margins alongside increasing net income reflect positive developments in profitability. The dip observed in 2019 stands out as an outlier in an otherwise steadily improving trend, meriting further scrutiny into that specific year's operational or market conditions.
Adjusted Return on Equity (ROE)
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).
2022 Calculations
1 ROE = 100 × Net income attributable to Fortinet, Inc. ÷ Total Fortinet, Inc. stockholders’ equity (deficit)
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income attributable to Fortinet, Inc. ÷ Total Fortinet, Inc. stockholders’ equity (deficit)
= 100 × ÷ =
- Net Income
- Reported net income attributable to Fortinet, Inc. exhibited a consistent upward trajectory from 2018 through 2022. Starting at 332.2 million USD in 2018, the income experienced moderate growth in 2019, followed by a more pronounced increase through 2020 and 2021, culminating in 857.3 million USD in 2022. The adjusted net income figures closely mirror the reported values, indicating minimal adjustments were necessary.
- Return on Equity (ROE)
- Reported ROE showed a declining trend from 2018 (32.88%) to 2019 (24.7%), before sharply increasing in 2020 and 2021, reaching a peak of 77.63% in 2021. Data for 2022 is not available for reported ROE. Adjusted ROE, which closely aligns with the reported figures, followed a similar pattern: declining slightly in 2019, then rising significantly through 2020 and 2021, peaking at 77.18%. This indicates a strong improvement in profitability relative to equity during the latter years, after a brief dip.
Adjusted Return on Assets (ROA)
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).
2022 Calculations
1 ROA = 100 × Net income attributable to Fortinet, Inc. ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income attributable to Fortinet, Inc. ÷ Total assets
= 100 × ÷ =
- Net Income Trends
- The reported net income attributable to the company demonstrated a steady upward trajectory over the five-year period. Starting at 332.2 million USD in 2018, the net income slightly decreased in 2019 to 326.5 million USD but then experienced substantial growth in subsequent years, reaching 857.3 million USD by the end of 2022. The adjusted net income figures followed a similar pattern, with consistent proximity to the reported values, confirming the reliability of the company's income figures after adjustment.
- Return on Assets (ROA) Analysis
- The reported ROA percentage exhibited variability during the period under review. It began at a healthy 10.79% in 2018, declined to 8.4% in 2019, then recovered to 12.08% in 2020 before experiencing a decline to 10.25% in 2021. By 2022, the ROA surged to 13.77%, indicating improved profitability relative to assets. The adjusted ROA values closely mirror the reported ROA values, with minor differences each year, thereby reinforcing the consistency of the asset utilization metrics.
- Overall Financial Performance
- The company showed significant growth in both net income and asset efficiency over the examined timespan. Despite some fluctuations in 2019 and 2021, the general pattern points to improving profitability and enhanced operational effectiveness. The close alignment between reported and adjusted figures across both net income and ROA adds confidence to the accuracy and reliability of the reported financial performance.