Net Profit Margin
since 2009
Calculation
Fortinet Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Fortinet, Inc.1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 19.41% | = | 100 | × | 857,300) | ÷ | 4,417,400) |
| Dec 31, 2021 | 18.16% | = | 100 | × | 606,800) | ÷ | 3,342,200) |
| Dec 31, 2020 | 18.83% | = | 100 | × | 488,500) | ÷ | 2,594,400) |
| Dec 31, 2019 | 15.14% | = | 100 | × | 326,500) | ÷ | 2,156,200) |
| Dec 31, 2018 | 18.44% | = | 100 | × | 332,200) | ÷ | 1,801,200) |
| Dec 31, 2017 | 2.10% | = | 100 | × | 31,399) | ÷ | 1,494,930) |
| Dec 31, 2016 | 2.52% | = | 100 | × | 32,187) | ÷ | 1,275,443) |
| Dec 31, 2015 | 0.79% | = | 100 | × | 7,987) | ÷ | 1,009,268) |
| Dec 31, 2014 | 3.29% | = | 100 | × | 25,343) | ÷ | 770,364) |
| Dec 31, 2013 | 7.20% | = | 100 | × | 44,273) | ÷ | 615,297) |
| Dec 31, 2012 | 12.52% | = | 100 | × | 66,836) | ÷ | 533,639) |
| Dec 31, 2011 | 14.41% | = | 100 | × | 62,492) | ÷ | 433,576) |
| Dec 31, 2010 | 12.70% | = | 100 | × | 41,245) | ÷ | 324,696) |
| Dec 31, 2009 | 23.87% | = | 100 | × | 60,179) | ÷ | 252,115) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31).
1 US$ in thousands
The net profit margin exhibits a cyclical trajectory characterized by an extended period of contraction followed by a sharp recovery and subsequent stabilization at a high level.
- Margin Compression and Low Point (2009–2017)
- A persistent downward trend is observed from 2009 to 2015, with the net profit margin declining from 23.87% to a low of 0.79%. While revenue grew consistently during this interval—increasing from approximately 252 million USD to over 1 billion USD—net income failed to keep pace, suggesting that operating expenses scaled more rapidly than top-line growth. Profitability remained suppressed through 2017, with the margin lingering near 2.10%.
- Profitability Inflection (2018)
- A significant structural shift occurred in 2018, marked by a sharp increase in the net profit margin to 18.44%. This inflection point is highlighted by a dramatic rise in net income, which surged from 31.4 million USD in 2017 to 332.2 million USD in 2018, indicating a successful optimization of the cost structure or a shift in product mix toward higher-margin offerings.
- Sustainable Scaling and Stabilization (2019–2022)
- Between 2019 and 2022, the net profit margin stabilized within a robust range of 15.14% to 19.41%. During this period, the company demonstrated strong operating leverage, as revenue grew to 4.42 billion USD and net income climbed to 857.3 million USD. The relative stability of the margin during this phase of rapid expansion indicates a mature ability to maintain profitability while scaling operations.
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Comparison to Competitors
Fortinet Inc., net profit margin, long-term trends, comparison to competitors
| Fortinet Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 19.41% | 11.17% | 27.01% | -6.84% | 23.84% | -2.99% | 2.71% | 16.23% | 36.69% | 15.83% | -19.61% | -4.85% | 5.45% | 4.49% | 19.38% | 0.57% |
| Dec 31, 2021 | 18.16% | 11.69% | 30.55% | 1.27% | 23.29% | -2.02% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 3.90% | 18.02% | -6.54% |
| Dec 31, 2020 | 18.83% | 11.52% | 40.88% | — | 22.02% | -4.07% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 2.62% | 18.03% | -13.25% |
| Dec 31, 2019 | 15.14% | 11.06% | 26.42% | — | 42.33% | -4.61% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | 15.84% | -14.82% |
| Dec 31, 2018 | 18.44% | 9.76% | 28.69% | — | 16.17% | — | 10.97% | 20.31% | 15.02% | 9.60% | — | -6.51% | 1.22% | -1.02% | 13.86% | -14.99% |
| Dec 31, 2017 | 2.10% | 9.37% | 23.20% | — | 10.50% | — | 7.27% | 18.76% | 23.57% | 24.74% | — | -12.30% | 2.14% | -7.71% | 5.01% | -26.01% |
| Dec 31, 2016 | 2.52% | 11.82% | 19.96% | — | 11.18% | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | -32.49% | 11.01% | -24.94% |
| Dec 31, 2015 | 0.79% | 9.28% | 13.13% | — | 14.83% | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | -19.73% | 10.08% | -31.48% |
| Dec 31, 2014 | 3.29% | 9.23% | 6.47% | — | 10.05% | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | -26.28% | 12.59% | -36.79% |
| Dec 31, 2013 | 7.20% | 10.80% | 7.15% | — | 11.25% | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | -17.36% | 12.63% | -43.55% |
| Dec 31, 2012 | 12.52% | 8.58% | 18.91% | — | 33.17% | — | 15.89% | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | -15.32% | 10.39% | — |
| Dec 31, 2011 | 14.41% | 8.33% | 19.75% | — | 6.28% | — | 14.83% | 16.46% | 33.10% | 23.99% | — | — | 3.89% | — | 14.42% | — |
| Dec 31, 2010 | 12.70% | 7.71% | 20.39% | — | 13.52% | — | 14.85% | 16.61% | 30.02% | 22.87% | — | — | 6.18% | — | 17.17% | — |
| Dec 31, 2009 | 23.87% | 6.86% | 13.12% | — | -17.58% | — | 14.02% | 14.05% | 24.93% | 24.05% | — | — | 4.03% | — | 12.33% | — |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31).
Comparison to Sector (Software & Services)
Fortinet Inc., net profit margin, long-term trends, comparison to sector (software & services)
| Fortinet Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 19.41% | 21.55% |
| Dec 31, 2021 | 18.16% | 25.12% |
| Dec 31, 2020 | 18.83% | 20.08% |
| Dec 31, 2019 | 15.14% | 21.61% |
| Dec 31, 2018 | 18.44% | 12.10% |
| Dec 31, 2017 | 2.10% | 15.36% |
| Dec 31, 2016 | 2.52% | 16.49% |
| Dec 31, 2015 | 0.79% | 14.57% |
| Dec 31, 2014 | 3.29% | 18.21% |
| Dec 31, 2013 | 7.20% | 20.55% |
| Dec 31, 2012 | 12.52% | 18.62% |
| Dec 31, 2011 | 14.41% | 20.48% |
| Dec 31, 2010 | 12.70% | 19.41% |
| Dec 31, 2009 | 23.87% | 17.17% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31).
Comparison to Industry (Information Technology)
Fortinet Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Fortinet Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 19.41% | 22.27% |
| Dec 31, 2021 | 18.16% | 23.48% |
| Dec 31, 2020 | 18.83% | 19.76% |
| Dec 31, 2019 | 15.14% | 19.73% |
| Dec 31, 2018 | 18.44% | 18.59% |
| Dec 31, 2017 | 2.10% | 17.77% |
| Dec 31, 2016 | 2.52% | 17.58% |
| Dec 31, 2015 | 0.79% | 18.32% |
| Dec 31, 2014 | 3.29% | 19.33% |
| Dec 31, 2013 | 7.20% | 20.15% |
| Dec 31, 2012 | 12.52% | 20.07% |
| Dec 31, 2011 | 14.41% | 20.71% |
| Dec 31, 2010 | 12.70% | 20.19% |
| Dec 31, 2009 | 23.87% | 14.45% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31).