Stock Analysis on Net
AI Tokens
Stock Analysis on Net

Fortinet Inc. (NASDAQ:FTNT)

This company has been moved to the archive! The financial data has not been updated since May 8, 2023.

Common-Size Balance Sheet: Assets

Fortinet Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Cash and cash equivalents 27.02 22.29 26.25 31.46 36.14
Short-term investments 8.07 20.17 19.17 21.70 17.45
Marketable equity securities 0.41 0.65 0.00 0.00 0.00
Accounts receivable, net of allowance for credit losses 20.26 13.65 17.80 14.01 14.44
Inventory 4.25 2.97 3.46 3.03 2.92
Prepaid expenses and other current assets 1.17 1.10 1.07 1.06 1.20
Current assets 61.18% 60.83% 67.76% 71.26% 72.15%
Long-term investments 0.73 7.45 2.92 3.71 2.18
Property and equipment, net 14.43 11.62 11.08 8.86 8.82
Deferred contract costs 8.32 7.15 7.54 6.10 5.93
Deferred tax assets 9.14 5.78 6.06 5.99 8.28
Goodwill 2.06 2.11 2.30 1.73 1.24
Other intangible assets, net 0.90 1.07 0.78 0.80 0.72
Other assets 3.24 3.98 1.56 1.54 0.68
Non-current assets 38.82% 39.17% 32.24% 28.74% 27.85%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The asset composition demonstrates a structural shift from a high concentration of liquidity toward increased operational and long-term investments. Current assets, which represented 72.15% of total assets in 2018, declined to 61.18% by 2022. Conversely, non-current assets grew from 27.85% to 38.82% over the same period, indicating a strategic reallocation of the asset base toward longer-term resources.

Liquidity and Short-Term Investments
A downward trend is observed in the proportion of highly liquid assets. Cash and cash equivalents decreased from 36.14% in 2018 to 27.02% in 2022, despite a slight recovery in the final year. Short-term investments experienced a more pronounced decline, falling from 17.45% in 2018 to 8.07% in 2022, with a significant drop occurring between 2021 and 2022.
Working Capital Trends
Operational current assets have increased as a percentage of the total balance sheet. Accounts receivable, net of allowance, rose from 14.44% in 2018 to 20.26% in 2022, suggesting a higher proportion of capital tied up in unpaid customer invoices. Inventory also showed a gradual increase, rising from 2.92% to 4.25% over the five-year period.
Fixed and Long-Term Asset Growth
Investment in infrastructure and capitalized costs has expanded. Property and equipment, net, increased steadily from 8.82% in 2018 to 14.43% in 2022. Additionally, deferred contract costs grew from 5.93% to 8.32%, reflecting a higher weight of capitalized contract acquisition or fulfillment costs relative to total assets.
Other Non-Current Components
Deferred tax assets exhibited volatility, ending at 9.14% in 2022 after dipping to a low of 5.78% in 2021. Goodwill and other intangible assets remained relatively stable and constitute a small fraction of the overall asset base, collectively remaining below 4% throughout the analysis period.

The overall trend reflects a transition from a cash-heavy position toward a more capital-intensive operational structure, characterized by higher levels of receivables, physical assets, and deferred costs.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?