Return on Equity (ROE)
since 2009
Calculation
Fortinet Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Fortinet, Inc.1 | ÷ | Total Fortinet, Inc. stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | — | = | 100 | × | 857,300) | ÷ | (281,600) |
| Dec 31, 2021 | 77.63% | = | 100 | × | 606,800) | ÷ | 781,700) |
| Dec 31, 2020 | 57.07% | = | 100 | × | 488,500) | ÷ | 856,000) |
| Dec 31, 2019 | 24.70% | = | 100 | × | 326,500) | ÷ | 1,321,900) |
| Dec 31, 2018 | 32.88% | = | 100 | × | 332,200) | ÷ | 1,010,200) |
| Dec 31, 2017 | 5.33% | = | 100 | × | 31,399) | ÷ | 589,377) |
| Dec 31, 2016 | 3.84% | = | 100 | × | 32,187) | ÷ | 837,681) |
| Dec 31, 2015 | 1.06% | = | 100 | × | 7,987) | ÷ | 755,377) |
| Dec 31, 2014 | 3.75% | = | 100 | × | 25,343) | ÷ | 675,966) |
| Dec 31, 2013 | 7.56% | = | 100 | × | 44,273) | ÷ | 585,760) |
| Dec 31, 2012 | 13.08% | = | 100 | × | 66,836) | ÷ | 510,934) |
| Dec 31, 2011 | 17.44% | = | 100 | × | 62,492) | ÷ | 358,354) |
| Dec 31, 2010 | 17.74% | = | 100 | × | 41,245) | ÷ | 232,454) |
| Dec 31, 2009 | 42.25% | = | 100 | × | 60,179) | ÷ | 142,452) |
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
- Net Income Trends
- The net income attributable to the company displayed significant fluctuations from 2009 through 2022. Initially, there was a decrease from 60,179 thousand US dollars in 2009 to 25,343 thousand US dollars in 2014. However, from 2015 onwards, net income generally trended upward, with notable increases in 2018 and thereafter. The values surged sharply, reaching 857,300 thousand US dollars by 2022, indicating substantial profitability growth in recent years.
- Stockholders’ Equity Patterns
- The total stockholders’ equity experienced a mostly upward trajectory from 2009 to 2021, increasing from 142,452 thousand US dollars to a peak of 1,321,900 thousand US dollars in 2019, before declining to 781,700 thousand in 2021 and turning negative to -281,600 thousand US dollars in 2022. This significant downturn at the end of the period suggests potential challenges affecting shareholders' equity, possibly driven by liabilities or losses not reflected in net income.
- Return on Equity (ROE) Developments
- The ROE showed a declining trend from a peak of 42.25% in 2009 to a low of 1.06% in 2015, indicating decreasing efficiency in generating profit from equity during that timeframe. Subsequently, the ROE began to recover strongly, with notable increases reaching a high of 77.63% in 2021. The absence of a recorded ROE value for 2022 may be related to the negative stockholders' equity in that year, as ROE is typically not reported or is undefined when equity is negative.
- Overall Insights
- The company experienced fluctuating profitability and equity positions over the analyzed period. The sharp rise in net income and the high ROE in the later years point to improved operational performance and shareholder value creation. However, the negative equity in 2022 raises concerns regarding the company's financial structure and potential risks, despite strong net income. This disparity warrants further investigation to understand the underlying causes of the equity deficit amid growing profitability.
Comparison to Competitors
Fortinet Inc., ROE, long-term trends, comparison to competitors
| Fortinet Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Fair Isaac Corp. | 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 | — | 31.11% | 33.85% | 30.93% | -22.89% | -3.56% | — | 7.47% | 12.57% | 43.68% | — | -14.57% | -127.14% | 2.48% | 6.46% | 17.85% | 0.65% |
| Dec 31, 2021 | 77.63% | 30.25% | 32.59% | 25.39% | -10.64% | -1.99% | — | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | -78.63% | 9.81% | 6.22% | 14.31% | -8.62% |
| Dec 31, 2020 | 57.07% | 30.05% | 39.66% | 23.69% | -19.10% | -2.56% | 71.41% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | -24.23% | 0.37% | 4.18% | 13.54% | -19.33% |
| Dec 31, 2019 | 24.70% | 33.17% | 28.03% | 47.03% | — | -2.14% | 66.30% | 45.25% | 41.53% | 38.35% | 50.87% | — | -5.16% | 7.11% | 29.45% | 13.04% | -21.36% |
| Dec 31, 2018 | 32.88% | 39.17% | 27.67% | 26.84% | — | — | 54.00% | 51.96% | 51.44% | 20.03% | 8.37% | — | -15.30% | 1.36% | -2.40% | 12.43% | -20.33% |
| Dec 31, 2017 | 5.33% | 38.50% | 20.02% | 20.63% | — | — | 30.07% | 32.70% | 71.71% | 29.29% | 17.33% | — | -28.52% | 2.40% | -25.53% | 4.17% | -35.11% |
| Dec 31, 2016 | 3.84% | 54.42% | 15.74% | 27.38% | — | — | 24.49% | 65.07% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Dec 31, 2015 | 1.06% | 49.78% | 8.99% | 18.34% | — | — | 19.79% | 92.48% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Dec 31, 2014 | 3.75% | 51.32% | 3.96% | 11.92% | — | — | 20.87% | 101.30% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Dec 31, 2013 | 7.56% | 66.16% | 4.31% | 14.21% | — | — | 16.98% | 72.32% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Dec 31, 2012 | 13.08% | 61.59% | 12.49% | 48.07% | — | — | 19.39% | 88.04% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Dec 31, 2011 | 17.44% | 58.72% | 14.40% | 17.57% | — | — | 15.37% | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Dec 31, 2010 | 17.74% | 62.79% | 14.92% | 45.74% | — | — | 13.57% | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Dec 31, 2009 | 42.25% | 55.08% | 7.90% | -138.29% | — | — | 10.85% | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
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., ROE, long-term trends, comparison to sector (software & services)
| Fortinet Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | — | 31.05% |
| Dec 31, 2021 | 77.63% | 36.19% |
| Dec 31, 2020 | 57.07% | 30.24% |
| Dec 31, 2019 | 24.70% | 35.60% |
| Dec 31, 2018 | 32.88% | 20.25% |
| Dec 31, 2017 | 5.33% | 23.84% |
| Dec 31, 2016 | 3.84% | 26.24% |
| Dec 31, 2015 | 1.06% | 23.03% |
| Dec 31, 2014 | 3.75% | 28.07% |
| Dec 31, 2013 | 7.56% | 31.66% |
| Dec 31, 2012 | 13.08% | 32.62% |
| Dec 31, 2011 | 17.44% | 38.74% |
| Dec 31, 2010 | 17.74% | 37.79% |
| Dec 31, 2009 | 42.25% | 35.83% |
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., ROE, long-term trends, comparison to industry (information technology)
| Fortinet Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | — | 39.07% |
| Dec 31, 2021 | 77.63% | 42.41% |
| Dec 31, 2020 | 57.07% | 35.69% |
| Dec 31, 2019 | 24.70% | 36.61% |
| Dec 31, 2018 | 32.88% | 30.39% |
| Dec 31, 2017 | 5.33% | 23.40% |
| Dec 31, 2016 | 3.84% | 23.36% |
| Dec 31, 2015 | 1.06% | 26.17% |
| Dec 31, 2014 | 3.75% | 25.60% |
| Dec 31, 2013 | 7.56% | 24.89% |
| Dec 31, 2012 | 13.08% | 26.24% |
| Dec 31, 2011 | 17.44% | 29.20% |
| Dec 31, 2010 | 17.74% | 27.87% |
| Dec 31, 2009 | 42.25% | 20.26% |
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).