Stock Analysis on Net
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.

Balance Sheet: Liabilities and Stockholders’ Equity 

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Fortinet Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Accounts payable 243,400 148,400 141,600 96,400 86,400
Accrued liabilities 266,300 197,300 149,200 101,800 105,700
Accrued payroll and compensation 219,400 195,000 145,900 101,800 98,400
Deferred revenue 2,349,300 1,777,400 1,392,800 1,173,600 965,900
Current liabilities 3,078,400 2,318,100 1,829,500 1,473,600 1,256,400
Deferred revenue 2,291,000 1,675,500 1,212,500 962,300 720,900
Income tax liabilities 67,800 79,500 90,300 82,800 77,500
Long-term debt 990,400 988,400 — — —
Other liabilities 82,000 59,200 56,200 44,900 13,000
Non-current liabilities 3,431,200 2,802,600 1,359,000 1,090,000 811,400
Total liabilities 6,509,600 5,120,700 3,188,500 2,563,600 2,067,800
Common stock, $0.001 par value 800 200 200 200 200
Additional paid-in capital 1,284,200 1,254,200 1,207,200 1,180,300 1,068,300
Accumulated other comprehensive income (loss) (20,200) (4,800) 700 1,100 (800)
Retained earnings (accumulated deficit) (1,546,400) (467,900) (352,100) 140,300 (57,500)
Total Fortinet, Inc. stockholders’ equity (deficit) (281,600) 781,700 856,000 1,321,900 1,010,200
Non-controlling interests — 16,700 — — —
Total equity (deficit) (281,600) 798,400 856,000 1,321,900 1,010,200
Total liabilities and equity (deficit) 6,228,000 5,919,100 4,044,500 3,885,500 3,078,000

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 Trends
The total liabilities have shown a consistent upward trend over the observed periods, rising from approximately $2.07 billion in 2018 to about $6.51 billion in 2022. Current liabilities increased from $1.26 billion to $3.08 billion, reflecting a significant growth in short-term obligations. Notably, accounts payable and accrued liabilities both exhibited steady increases, with accounts payable nearly tripling and accrued liabilities more than doubling by 2022. Deferred revenue, a major component of liabilities, also expanded substantially from $965.9 million to $2.35 billion, indicating growth in unearned revenue or prepayments from customers. Long-term debt became material in 2021, with values around $988 million and $990 million in 2021 and 2022 respectively, suggesting new borrowings or debt instruments undertaken during this time. Other liabilities showed moderate growth, increasing from $13 million to $82 million.
Equity Dynamics
Stockholders' equity presented mixed trends. The total equity experienced growth between 2018 and 2019, increasing from about $1.01 billion to $1.32 billion, followed by a decline in subsequent years, reaching negative equity of approximately -$282 million by 2022. This decline was largely influenced by a substantial increase in accumulated deficit (retained earnings), which shifted from a positive $140.3 million in 2019 to a significant negative balance exceeding $1.546 billion in 2022. Additional paid-in capital grew steadily but at a much slower pace, while other comprehensive income/loss shifted negatively, particularly in 2021 and 2022, worsening the equity position. An increase in common stock par value in 2022 suggests a change in capital structure or issuance of stock shares during that year. Non-controlling interests appeared only in 2021 at $16.7 million but were absent in other years.
Overall Financial Position
The total liabilities and equity combination grew from approximately $3.08 billion in 2018 to $6.23 billion in 2022, reflecting company expansion but accompanied by increasing financial risk implied by declining equity. The growth in liabilities outpaced that of equity, resulting in an overall deficit in stockholders' equity by the final period. This condition may indicate operational losses or substantial expenditures surpassing retained earnings accumulation, combined with increased leverage evidenced by rising long-term debt and current liabilities.