Fortinet Inc. (NASDAQ:FTNT)

Total Asset Turnover

The reported total asset turnover exhibited fluctuations over the years, decreasing slightly from 0.59 in 2018 to 0.55 in 2019, then increasing to 0.64 in 2020, dipping to 0.56 in 2021, and rising notably to 0.71 in 2022. Adjusted figures followed a similar trend but showed consistently higher values, reaching 0.99 in 2022, indicating improved efficiency in asset utilization when adjustments are considered.

Current Ratio

The reported current ratio showed a declining trend from 1.77 in 2018, peaking slightly at 1.88 in 2019, then steadily decreasing to 1.24 in 2022, suggesting a reduction in short-term liquidity. Adjusted current ratios were significantly higher throughout the period, peaking at 9.23 in 2019 and declining to 5.23 by 2022, indicating a substantial buffer in liquidity after adjustments, though the downward trend implies tightening liquidity over time.

Debt to Equity and Debt to Capital

Reported debt to equity and debt to capital were only available for 2021 and 2022, with debt to equity at 1.26 in 2021 and missing for 2022, and debt to capital increasing markedly from 0.56 in 2021 to 1.4 in 2022, indicating increased leverage. Adjusted debt to equity remained very low but rose from 0.02 in 2018 to 0.29 in 2022, while adjusted debt to capital saw a slight increase from 0.02 in 2018 to 0.22 in 2022, reflecting a gradual rise in the company's adjusted leverage position.

Financial Leverage

The reported financial leverage showed significant volatility, starting at 3.05 in 2018, decreasing slightly to 2.94 in 2019, then rising sharply to 4.72 in 2020 and 7.57 in 2021, before data became unavailable in 2022. Adjusted financial leverage remained relatively stable but increased gradually from 1.17 in 2018 to 1.49 in 2022, suggesting increased reliance on debt or other liabilities when adjusted.

Net Profit Margin

The reported net profit margin fluctuated between 15.14% and 19.41%, with a notable dip in 2019 followed by recovery and growth by 2022. The adjusted net profit margin was consistently higher, rising from 26.73% in 2018 to a peak of 32.32% in 2021 and slightly declining to 32.22% in 2022, indicating strong operational profitability when adjustments are taken into account.

Return on Equity (ROE)

The reported ROE showed considerable volatility, dropping from 32.88% in 2018 to 24.7% in 2019, then surging to 57.07% in 2020 and 77.63% in 2021, with missing data for 2022. Adjusted ROE presented a steadier positive trend, increasing gradually from 23.46% in 2018 to 47.51% in 2022, highlighting improving shareholder returns on an adjusted basis.

Return on Assets (ROA)

Reported ROA demonstrated moderate fluctuations, decreasing from 10.79% in 2018 to 8.4% in 2019, rising to 12.08% in 2020, dipping again to 10.25% in 2021, and increasing to 13.77% in 2022. Adjusted ROA, consistently higher than the reported figures, increased steadily from 20.01% in 2018 to 31.9% in 2022, reflecting improved asset profitability after adjustments.

Overall Insights

The data reveals a general trend of improved operational efficiency and profitability on an adjusted basis over the five-year period. While reported liquidity ratios have shown some decline, adjusted liquidity measures indicate sufficient short-term resources. Leverage ratios have increased, particularly in reported data, indicating greater debt usage that may contribute to the elevated reported financial leverage and ROE volatility. Despite fluctuations in the reported metrics, the adjusted profitability and efficiency ratios suggest strengthening financial performance and asset utilization efficiency.

Revenue Trends

Revenue exhibited consistent growth over the analyzed five-year period, rising from approximately 1.8 billion USD at the end of 2018 to about 4.42 billion USD by the end of 2022. The increase was steady each year, with the most significant growth occurring in the final year, where revenue increased by over 32% compared to the previous year.

Total Assets Trends

Total assets increased significantly over the period, from roughly 3.08 billion USD in 2018 to almost 6.23 billion USD in 2022. The most notable jump occurred between 2020 and 2021, where total assets grew by approximately 46%, suggesting substantial investments or acquisitions during that period. Growth in assets continued, though at a slower pace, into 2022.

Reported Total Asset Turnover

The reported total asset turnover ratio showed variability throughout the period. Starting at 0.59 in 2018, the ratio dipped slightly to 0.55 in 2019, then peaked at 0.64 in 2020 before declining to 0.56 in 2021. By 2022, the ratio increased noticeably to 0.71, indicating improved efficiency in utilizing assets to generate revenue during the last year.

Adjusted Revenue Insights

Adjusted revenue exhibited similar upward trends as reported revenue but with consistently higher values each year. It increased from 2.15 billion USD in 2018 to 5.6 billion USD in 2022. The growth rate also accelerated toward the end of the period, emphasizing an underlying improvement or adjustments made to reflect more comprehensive revenue measures.

Adjusted Total Assets Insights

Adjusted total assets followed the reported total assets trend but remained slightly below the reported figures each year. From 2.87 billion USD in 2018 to 5.66 billion USD in 2022, adjusted assets increased notably between 2020 and 2021, mirroring the jump in reported assets. This alignment suggests that adjustments did not alter the overall growth trajectory of the asset base.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio consistently outperformed the reported ratio each year, indicating higher efficiency when adjusted figures are considered. Starting at 0.75 in 2018, it decreased slightly to 0.71 in 2019, then increased to 0.81 in 2020 before dipping slightly to 0.75 in 2021. By 2022, the ratio reached 0.99, the highest in the period, suggesting substantially improved asset utilization in generating adjusted revenue.

Overall Analysis

The data reveals a strong growth trajectory in both revenue and asset bases over the five years. Despite fluctuations in asset turnover ratios, the most recent year demonstrates marked improvements in asset efficiency, particularly when adjusted figures are taken into account. This suggests enhanced operational effectiveness alongside significant expansion of assets and revenue streams.

The analysis of the financial data reveals several significant trends over the five-year period ending in 2022.

Current Assets

Current assets increased steadily from US$2,220,900 thousand in 2018 to US$3,810,400 thousand in 2022, indicating growth in liquid and short-term assets available to the company.

Current Liabilities

Current liabilities showed a consistent upward trajectory, rising from US$1,256,400 thousand in 2018 to US$3,078,400 thousand in 2022. This reflects an increasing obligation level in the short term.

Reported Current Ratio

The reported current ratio started at 1.77 in 2018 and increased slightly to 1.88 in 2019, before declining to 1.24 by 2022. This downward trend in liquidity suggests that the company's ability to cover short-term liabilities with its current assets has weakened over the period.

Adjusted Current Assets

Adjusted current assets mirrored the trend of reported current assets, growing from US$2,221,800 thousand in 2018 to US$3,814,000 thousand in 2022.

Adjusted Current Liabilities

Adjusted current liabilities were significantly lower than the reported figures, though they too increased over time, from US$290,500 thousand in 2018 to US$729,100 thousand in 2022.

Adjusted Current Ratio

The adjusted current ratio was substantially higher than the reported ratio throughout the period, peaking at 9.23 in 2019, then decreasing to 5.23 by 2022. Despite this decline, the adjusted ratios indicate a strong liquidity position when considering adjustments made to liabilities and assets.

Overall, while the reported liquidity ratios show a decline suggesting increased short-term financial pressure, the adjusted ratios imply that underlying liquidity remains robust. The persistent rise in both assets and liabilities underscores growing operational scale, but also indicates increased short-term obligations that warrant monitoring.

Total Debt

The total debt values are only provided for the years ending 2021 and 2022, showing a slight increase from 988,400 thousand US dollars to 990,400 thousand US dollars. This indicates a relatively stable total debt level in that period.

Total Stockholders’ Equity (Deficit)

Stockholders’ equity demonstrates significant fluctuation over the years. Starting at 1,010,200 thousand US dollars in 2018, it increases to 1,321,900 thousand in 2019, then declines sharply to 856,000 thousand in 2020 and further to 781,700 thousand in 2021. By 2022, the equity turns negative, reaching -281,600 thousand US dollars. This trend evidences deteriorating equity position culminating in a deficit.

Reported Debt to Equity Ratio

The reported debt-to-equity ratio is only available for the year 2021 at 1.26, suggesting that the company had higher debt relative to equity during that year. No other data points are given for comparison.

Adjusted Total Debt

Adjusted total debt remains relatively low and stable from 2018 (50,100 thousand) through 2020 (53,100 thousand), then sharply increases to above 1,000,000 thousand in 2021 (1,055,200 thousand) and 2022 (1,086,100 thousand). This substantial rise indicates a significant increase in financial leverage or obligations during these latter years.

Adjusted Total Equity (Deficit)

Adjusted total equity grows consistently from 2,451,900 thousand US dollars in 2018 to a peak of 3,919,400 thousand in 2021, before slightly declining to 3,801,000 thousand in 2022. Despite this minor decrease, the overall trend reflects strengthening equity when adjusted, contrasting with the negative trend observed in the reported total stockholders' equity.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio is very low for the years 2018 through 2020, ranging from 0.01 to 0.02, indicating minimal leverage. However, this ratio increases significantly to 0.27 in 2021 and further to 0.29 in 2022. This rise corresponds with the increase in adjusted debt and reflects a higher proportion of debt in the capital structure relative to equity in recent years, though still maintaining lower leverage compared to the reported ratio for 2021.

Total Debt

The total debt figures are only available for the years 2021 and 2022, showing a slight increase from 988,400 thousand US dollars in 2021 to 990,400 thousand US dollars in 2022, indicating relative stability in reported debt levels over this period.

Total Capital

Total capital experienced notable fluctuations over the five-year span. It increased from approximately 1,010,200 thousand US dollars in 2018 to a peak of 1,772,100 thousand US dollars in 2021, with an intermediate decline to 856,000 thousand US dollars in 2020. However, in 2022, total capital sharply declined to 708,800 thousand US dollars, the lowest point in the observed period.

Reported Debt to Capital Ratio

This ratio is only reported for 2021 and 2022. It rose significantly from 0.56 in 2021 to 1.4 in 2022, suggesting an increased leverage or a proportionally higher debt load relative to total capital in the last year.

Adjusted Total Debt

Adjusted total debt remained relatively low and stable from 2018 to 2020, ranging between 46,100 and 53,100 thousand US dollars. However, a sharp increase occurred in 2021 to 1,055,200 thousand US dollars, with a further slight increase to 1,086,100 thousand US dollars in 2022, indicating a significant rise in adjusted debt levels starting in 2021.

Adjusted Total Capital

Adjusted total capital showed steady growth from 2,502,000 thousand US dollars in 2018 to 4,974,600 thousand US dollars in 2021, suggesting overall expansion in capital base. In 2022, there was a marginal decline to 4,887,100 thousand US dollars, indicating a slight contraction but relatively stable capital compared to the previous high.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio remained minimal from 2018 through 2020, fluctuating between 0.01 and 0.02, reflecting low leverage. Beginning in 2021, this ratio rose sharply to 0.21 and slightly increased to 0.22 in 2022, signifying a notable increase in leverage when considering adjusted figures.

Overall Insights

The data reveals a marked increase in both reported and adjusted debt beginning in 2021, coupled with fluctuating capital levels. While total capital peaked in 2021 and decreased in 2022, adjusted total capital followed a similar rising trend until 2021 with minor decline afterward. The growing debt to capital ratios, both reported and adjusted, indicate an increasing reliance on debt financing or a shift in capital structure starting in 2021. The adjustments highlight that standard debt figures may understate leverage, with adjusted metrics showing significantly higher debt relative to capital from 2021 onwards.

Total Assets

The total assets of the company showed a consistent upward trend over the five-year period. Starting at approximately $3.08 billion in 2018, assets increased steadily each year, reaching about $6.23 billion by the end of 2022. This represents more than a doubling of total assets, indicating substantial growth in the company's asset base.

Total Stockholders' Equity (Reported)

Reported stockholders’ equity exhibited fluctuations during the period. It rose from around $1.01 billion in 2018 to a peak of approximately $1.32 billion in 2019, followed by a sharp decline to $856 million in 2020 and further decreases thereafter. By 2022, the reported equity had fallen into a deficit of approximately $282 million, signaling potential financial stress or reclassification affecting reported equity values.

Reported Financial Leverage

Reported financial leverage increased significantly from 3.05 in 2018 to 7.57 in 2021. This rising ratio suggests an increased reliance on debt or liabilities relative to equity during this time. Notably, the reported financial leverage ratio is absent for 2022, which may reflect reporting changes or data unavailability.

Adjusted Total Assets

Adjusted total assets followed a similar upward trajectory as the reported assets, growing from approximately $2.87 billion in 2018 to $5.66 billion in 2022. The adjusted figures are consistently lower than the reported total assets but maintain a stable growth pattern indicative of the core asset growth after certain adjustments.

Adjusted Total Equity (Deficit)

Contrasting with the reported equity figures, adjusted equity steadily increased throughout the period, from around $2.45 billion in 2018 to approximately $3.80 billion in 2022. This consistent growth in adjusted equity may point to a more favorable view of the company’s net worth when certain adjustments are considered, supporting financial stability.

Adjusted Financial Leverage

The adjusted financial leverage ratio was relatively stable between 2018 and 2020, hovering near 1.17, and then showed a gradual increase to 1.49 by 2022. This indicates a moderate rise in leverage but at levels significantly lower than the reported leverage ratios, suggesting that the company's capital structure is less leveraged when considering adjusted figures.

Summary Insights

Overall, the company’s asset base expanded substantially over the analyzed period, reflecting growth in operations or asset acquisitions. However, the divergence between reported and adjusted equity and leverage metrics suggests differences in accounting treatments or one-time factors impacting reported results. The adjusted figures portray a healthier financial position with steady equity growth and moderate leverage, contrasting with the reported figures that show increased financial risk and eventual equity deficit. Such discrepancies highlight the importance of evaluating both reported and adjusted data to gain a comprehensive understanding of financial health.

The financial data reveals a consistent upward trend in both net income and revenue over the analyzed periods. Net income attributable to the company increased from 332,200 thousand US dollars in 2018 to 857,300 thousand US dollars in 2022, showing substantial growth. Similarly, revenue rose significantly from 1,801,200 thousand US dollars in 2018 to 4,417,400 thousand US dollars in 2022, indicating strong top-line expansion.

The reported net profit margin experienced some fluctuations but generally maintained a stable range, starting at 18.44% in 2018, declining to 15.14% in 2019, then recovering and reaching 19.41% in 2022. This pattern suggests challenges in 2019 but a subsequent improvement in profitability efficiency relative to revenue.

Adjusted figures, which include non-controlling interests, display a similar positive trajectory. Adjusted net income grew from 575,100 thousand US dollars in 2018 to 1,806,000 thousand US dollars in 2022, underscoring robust profitability after adjustments. Adjusted revenue increased from 2,151,700 thousand US dollars to 5,604,800 thousand US dollars over the same period, supporting the observed revenue growth trend on a broader basis.

The adjusted net profit margin reveals an upward movement with starting and ending points of 26.73% in 2018 and 32.22% in 2022, peaking at 32.32% in 2021. This indicates an improvement in profitability when adjustments are considered, suggesting effective cost management or operational efficiencies over time.

Overall, the data reflects significant growth in both revenue and net income metrics alongside improving profit margins, particularly in adjusted terms. The company's financial performance demonstrates strong expansion and enhanced profitability from 2018 through 2022.

Net Income Attributable to Fortinet, Inc.

Net income demonstrated a consistent and robust growth trend over the five-year period. Starting at 332,200 thousand US dollars in 2018, it slightly decreased in 2019 to 326,500 thousand but then increased significantly each subsequent year, reaching 857,300 thousand US dollars by the end of 2022. This reflects a strong upward momentum in profitability.

Total Stockholders’ Equity (Deficit)

The reported total stockholders’ equity experienced volatility during the period. It grew from 1,010,200 thousand US dollars in 2018 to a peak of 1,321,900 thousand in 2019, followed by a sharp decline to 856,000 thousand in 2020 and a further decrease to 781,700 thousand in 2021. By 2022, the equity turned negative, recording a deficit of -281,600 thousand US dollars, indicating potential financial stress or equity adjustments.

Reported Return on Equity (ROE)

The reported ROE displayed a general increasing trend from 32.88% in 2018 to 77.63% in 2021; however, data for 2022 is missing. The substantial rise suggests improved profitability relative to shareholder equity until 2021, but the absence of 2022 data combined with the equity deficit signals caution in interpreting recent performance using this metric.

Adjusted Net Income Including Non-controlling Interests

Adjusted net income consistently increased throughout the period, starting at 575,100 thousand US dollars in 2018 and reaching 1,806,000 thousand by 2022. The growth was steady and accelerating, indicating strong comprehensive profitability that accounts for all controlling interests.

Adjusted Total Equity (Deficit)

Adjusted total equity showed growth over the five years, rising from 2,451,900 thousand US dollars in 2018 to a peak of 3,919,400 thousand in 2021, with a slight decrease to 3,801,000 thousand in 2022. Despite the minor decline in 2022, adjusted equity remains substantially positive and much higher compared to reported total equity, suggesting adjustments that might have mitigated the effects seen in the reported equity figures.

Adjusted Return on Equity (ROE)

The adjusted ROE steadily increased across all available years, moving from 23.46% in 2018 to 47.51% in 2022. This consistent increase indicates improving effectiveness in generating returns on the adjusted shareholders’ equity base, reflecting enhanced profitability after accounting for adjustments.

Net Income Attributable to Fortinet, Inc.

The net income shows a consistent upward trend over the five-year period, increasing from $332.2 million in 2018 to $857.3 million in 2022. This reflects significant profitability growth, with particularly notable increases between 2019-2020 and 2021-2022.

Total Assets

Total assets increased steadily from $3.078 billion in 2018 to $6.228 billion in 2022. The most substantial growth occurred between 2020 and 2021, indicating expansion in asset base possibly due to investments or acquisitions.

Reported Return on Assets (ROA)

The reported ROA shows some variability but an overall positive trajectory. It decreased from 10.79% in 2018 to 8.4% in 2019, then rose to 12.08% in 2020. Although it dipped slightly to 10.25% in 2021, it rebounded strongly to 13.77% in 2022, suggesting improving asset efficiency in generating profit.

Adjusted Net Income Including Non-controlling Interests

Adjusted net income also demonstrates strong growth, increasing consistently from $575.1 million in 2018 to $1.806 billion in 2022. This metric’s faster growth relative to net income attributable indicates gains from adjustments and consolidation impacts, highlighting enhanced operational profitability when considering all interests.

Adjusted Total Assets

Adjusted total assets show a similar increasing pattern, growing from $2.874 billion in 2018 to $5.662 billion in 2022. Growth was especially notable between 2020 and 2021, paralleling the trend observed in reported total assets, though the adjusted figures remain slightly lower, reflecting exclusions or adjustments in asset valuation.

Adjusted Return on Assets (ROA)

The adjusted ROA improved significantly from 20.01% in 2018 to 31.9% in 2022. This reflects more than a 50% increase in efficiency at generating returns on adjusted assets over five years. The adjusted ROA peaked in 2020 at 25.74%, remained high in 2021 at 24.27%, and strongly increased in 2022, indicating sustained operational improvements and better asset utilization when adjusted for relevant factors.