Operating Profit Margin
since 2009
Calculation
Fortinet Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 21.95% | = | 100 | × | 969,600) | ÷ | 4,417,400) |
| Dec 31, 2021 | 19.46% | = | 100 | × | 650,400) | ÷ | 3,342,200) |
| Dec 31, 2020 | 20.50% | = | 100 | × | 531,800) | ÷ | 2,594,400) |
| Dec 31, 2019 | 15.96% | = | 100 | × | 344,200) | ÷ | 2,156,200) |
| Dec 31, 2018 | 12.82% | = | 100 | × | 231,000) | ÷ | 1,801,200) |
| Dec 31, 2017 | 7.35% | = | 100 | × | 109,804) | ÷ | 1,494,930) |
| Dec 31, 2016 | 3.37% | = | 100 | × | 42,944) | ÷ | 1,275,443) |
| Dec 31, 2015 | 1.47% | = | 100 | × | 14,877) | ÷ | 1,009,268) |
| Dec 31, 2014 | 7.70% | = | 100 | × | 59,324) | ÷ | 770,364) |
| Dec 31, 2013 | 11.72% | = | 100 | × | 72,090) | ÷ | 615,297) |
| Dec 31, 2012 | 18.83% | = | 100 | × | 100,475) | ÷ | 533,639) |
| Dec 31, 2011 | 20.50% | = | 100 | × | 88,904) | ÷ | 433,576) |
| Dec 31, 2010 | 17.04% | = | 100 | × | 55,341) | ÷ | 324,696) |
| Dec 31, 2009 | 10.05% | = | 100 | × | 25,334) | ÷ | 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 financial data over the analyzed period reveals significant developments in key operating metrics.
- Operating Income
- There is a general positive trend in operating income from 2009 through 2022, increasing from 25,334 thousand USD to 969,600 thousand USD. However, this growth was not linear. From 2013 to 2015, operating income experienced a sharp decline from 72,090 to 14,877 thousand USD, indicating potential operational challenges or increased costs in these years. Starting in 2016, there was a strong recovery and continued growth, with a marked acceleration after 2017, culminating in the highest observed value in 2022.
- Revenue
- Revenue shows a steady and robust growth throughout the entire period. The revenue nearly doubled every few years, rising from 252,115 thousand USD in 2009 to 4,417,400 thousand USD in 2022. This consistent increase suggests expanding market presence and/or successful business development strategies, contributing to the scale of operations.
- Operating Profit Margin
- The operating profit margin exhibits greater variability compared to revenue. It started at 10.05% in 2009, peaked at 20.5% in 2011, and then declined sharply to a low of 1.47% in 2015. Following this trough, the margin improved steadily, reaching a high of 21.95% in 2022. This pattern reflects fluctuations in cost management and operational efficiency, with a notable period of compression followed by sustained improvement in later years.
Overall, the data suggests a company that experienced early strong profitability, faced operational challenges mid-period as shown by decreased margins and operating income, but then managed to reverse these trends. The latter years demonstrate effective scaling with improved profitability, indicative of enhanced operational control and business growth.
Comparison to Competitors
Fortinet Inc., operating profit margin, long-term trends, comparison to competitors
| Fortinet Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Fair Isaac 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 | 21.95% | 15.21% | 34.64% | 30.15% | -9.82% | -3.50% | 39.38% | 20.20% | 42.06% | 25.74% | -8.46% | -3.43% | 2.07% | 4.90% | 22.87% | -2.27% |
| Dec 31, 2021 | 19.46% | 15.08% | 36.76% | 26.07% | -10.58% | -1.86% | 38.40% | 25.95% | 41.59% | 37.58% | -26.66% | -7.15% | 2.14% | 4.36% | 17.48% | -5.76% |
| Dec 31, 2020 | 20.50% | 14.69% | 32.93% | 24.06% | -30.34% | -2.28% | 22.86% | 28.34% | 37.03% | 35.57% | -107.41% | -5.25% | 1.74% | 4.40% | 16.83% | -13.85% |
| Dec 31, 2019 | 15.96% | 14.59% | 29.25% | 21.05% | — | -5.55% | 21.86% | 27.33% | 34.14% | 34.26% | — | -1.87% | 4.03% | 1.22% | 15.48% | -16.42% |
| Dec 31, 2018 | 12.82% | 14.04% | 31.45% | 18.53% | — | — | 19.99% | 25.10% | 31.77% | 34.34% | — | -5.68% | 2.25% | -1.63% | 11.54% | -14.15% |
| Dec 31, 2017 | 7.35% | 12.60% | 29.69% | 16.67% | — | — | 19.01% | 26.95% | 24.82% | 33.69% | — | -10.21% | 0.77% | -5.25% | 12.76% | -24.00% |
| Dec 31, 2016 | 3.37% | 13.82% | 25.51% | 13.49% | — | — | 19.24% | 26.46% | 23.65% | 34.02% | — | -13.79% | 1.72% | -30.41% | 13.10% | -22.77% |
| Dec 31, 2015 | 1.47% | 13.48% | 18.83% | 16.77% | — | — | 16.39% | 17.60% | 19.41% | 36.29% | — | -14.39% | -2.71% | -16.55% | 11.88% | -27.38% |
| Dec 31, 2014 | 7.70% | 13.49% | 9.95% | 13.07% | — | — | 20.52% | 29.16% | 31.97% | 38.56% | — | -36.00% | -7.03% | -22.24% | 12.09% | -32.69% |
| Dec 31, 2013 | 11.72% | 14.27% | 10.42% | 12.94% | — | — | 21.74% | 29.56% | 34.38% | 39.49% | — | -4.70% | -3.63% | -15.61% | 12.56% | -43.07% |
| Dec 31, 2012 | 18.83% | 13.00% | 26.80% | 15.96% | — | — | 24.89% | 28.35% | 29.52% | 36.92% | — | 1.53% | -1.55% | -15.42% | 10.82% | — |
| Dec 31, 2011 | 20.50% | 12.69% | 26.07% | 10.47% | — | — | 20.55% | 26.15% | 38.83% | 33.78% | — | — | 5.88% | — | 13.86% | — |
| Dec 31, 2010 | 17.04% | 12.62% | 26.13% | -3.09% | — | — | 18.72% | 24.98% | 38.57% | 33.79% | — | — | 8.83% | — | 13.33% | — |
| Dec 31, 2009 | 10.05% | 11.41% | 23.44% | -14.50% | — | — | 18.51% | 21.43% | 34.85% | 35.79% | — | — | 5.92% | — | 15.31% | — |
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).