Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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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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Fortinet Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
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).
- Liabilities
- The proportion of total liabilities relative to total liabilities and equity exhibits a clear increasing trend over the analyzed period. Starting at 67.18% in 2018, the ratio climbed steadily to 104.52% by the end of 2022, indicating that liabilities have grown to exceed total equity and imply a negative equity position in the latter year. Both current and non-current liabilities contributed to this trend, with current liabilities rising from 40.82% in 2018 to 49.43% in 2022, and non-current liabilities showing a more pronounced increase from 26.36% to 55.09% over the same period.
- Within the current liabilities category, deferred revenue shows a particularly notable fluctuation. It increased from 31.38% in 2018 to a peak of 37.72% in 2022, highlighting a growing deferred revenue balance, which could suggest increased advance payments or prepayments by customers.
- Long-term debt was absent in the early years but appeared at 16.7% in 2021 and slightly decreased to 15.9% in 2022, contributing significantly to the increase in non-current liabilities. This marks a shift in financing structure, indicating the company has taken on more debt in recent years.
- Other smaller liabilities such as accounts payable and accrued liabilities exhibited some variability but remained relatively stable with a slight upward tendency towards 2022.
- Equity
- Stockholders' equity displays a declining trend throughout the period. It decreased from 32.82% of total liabilities and equity in 2018 down to a negative value of -4.52% in 2022. This decline reflects worsening retained earnings and a loss of equity value over time.
- Retained earnings show considerable volatility and a decline, moving from a slight deficit of -1.87% in 2018 to a significant deficit of -24.83% in 2022, indicating accumulated losses that have adversely impacted overall equity.
- Additional paid-in capital declined steadily from 34.71% in 2018 to 20.62% in 2022, suggesting diminished new equity financing or possible capital consumption.
- The accumulated other comprehensive income (loss) was minimal and fluctuated slightly between marginal positive and negative values, implying that changes in comprehensive income had little impact on total equity.
- Summary
- The overall financial structure illustrates increasing liabilities, particularly non-current liabilities and long-term debt, coupled with a declining equity base, culminating in a negative equity position by the end of 2022. This shift may signal heightened financial leverage and potential solvency concerns. The growth in deferred revenue within current liabilities indicates a possible increase in advance customer payments, while the decline in retained earnings suggests ongoing operational losses or significant distribution of earnings over the analyzed period.