Name: Fortinet Inc. (NASDAQ:FTNT) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

Download chart

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

US$ in thousands

	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).

Total liabilities exhibited a substantial upward trajectory between 2018 and 2022, increasing from 2.07 billion US dollars to 6.51 billion US dollars. This expansion was characterized by a simultaneous rise in short-term operational obligations and the introduction of long-term debt, while the stockholders' equity position deteriorated from a surplus to a deficit by the end of the analyzed period.

Current Liabilities and Operational Obligations: Current liabilities rose steadily from 1.26 billion US dollars in 2018 to 3.08 billion US dollars in 2022. The primary catalyst for this growth was deferred revenue, which increased from 965.9 million US dollars to 2.35 billion US dollars. This pattern typically indicates an increase in advance payments from customers for services yet to be rendered. Additionally, accounts payable and accrued liabilities both showed consistent growth, with accounts payable nearly tripling from 86.4 million US dollars to 243.4 million US dollars over the five-year span.
Non-Current Liabilities and Debt Acquisition: Non-current liabilities grew from 811.4 million US dollars in 2018 to 3.43 billion US dollars in 2022. A significant shift occurred in 2021 with the introduction of long-term debt, which appeared at 988.4 million US dollars and remained relatively stable through 2022. The overall increase in non-current liabilities was further supported by a rise in non-current deferred revenue, which grew from 720.9 million US dollars to 2.29 billion US dollars, mirroring the trend observed in current deferred revenue.
Stockholders' Equity and Capital Structure: Total equity experienced a sharp decline, moving from 1.01 billion US dollars in 2018 to a deficit of 281.6 million US dollars by December 31, 2022. This erosion of equity is primarily attributed to the collapse of retained earnings, which shifted from a deficit of 57.5 million US dollars in 2018 to a brief surplus in 2019, before plummeting to a deficit of 1.55 billion US dollars by 2022. This trend suggests significant capital outflows or losses that outweighed the relatively stable contributions from additional paid-in capital.
Overall Financial Solvency Trends: The combination of tripling total liabilities and the transition to negative total equity indicates a significant shift in the company's capital structure. The reliance on debt and deferred revenue as primary funding sources increased, while the internal capital buffer provided by stockholders' equity was exhausted by the end of 2022.

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?