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 performance between 2009 and 2022 is characterized by consistent revenue growth coupled with significant volatility in operating profitability. While total revenue expanded from US$ 252.1 million to US$ 4.42 billion over the period, the operating profit margin experienced a distinct U-shaped trajectory, reflecting periods of expansion, severe compression, and subsequent recovery.
- Initial Margin Expansion (2009–2011)
- An initial period of efficiency gains is observed, with the operating profit margin increasing from 10.05% in 2009 to a peak of 20.50% in 2011. During this timeframe, operating income grew more rapidly than revenue, indicating strong operational leverage.
- Operational Compression and Trough (2012–2015)
- A sustained decline in profitability occurred between 2012 and 2015. Despite revenue nearly doubling from US$ 533.6 million to US$ 1.01 billion, operating income fell sharply from US$ 100.5 million to US$ 14.9 million. This resulted in the operating profit margin contracting from 18.83% to a period low of 1.47% by the end of 2015, suggesting a period of significant cost increases or strategic reinvestment that outpaced revenue growth.
- Recovery and Scalability (2016–2022)
- From 2016 onward, a consistent trend of margin recovery is evident. The operating profit margin climbed steadily from 3.37% in 2016 to 21.95% in 2022. This recovery is marked by an aggressive acceleration in operating income, which grew from US$ 42.9 million in 2016 to US$ 969.6 million in 2022. The final year of the analysis represents the highest operating profit margin and the highest absolute operating income in the recorded history.
Overall, the analysis reveals that while revenue growth remained linear and positive, the company's ability to convert that revenue into operating profit underwent a major cycle of deterioration and revitalization, ultimately achieving a level of operational efficiency in 2022 that exceeds the previous peak seen in 2011.
AI Ask an analyst for more
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?
Comparison to Competitors
Fortinet Inc., operating profit margin, long-term trends, comparison to competitors
| Fortinet Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | 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% | -1.70% | 30.15% | -3.50% | 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% | 5.37% | 26.07% | -1.86% | 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% | -2.28% | 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% | 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% | — | 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% | — | 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% | — | 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% | — | 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% | — | 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% | — | 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% | — | 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% | — | 26.15% | 38.83% | 33.78% | — | — | 5.88% | — | 13.86% | — |
| Dec 31, 2010 | 17.04% | 12.62% | 26.13% | — | -3.09% | — | 24.98% | 38.57% | 33.79% | — | — | 8.83% | — | 13.33% | — |
| Dec 31, 2009 | 10.05% | 11.41% | 23.44% | — | -14.50% | — | 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).