Stock Analysis on Net
Stock Analysis on Net

Fortinet Inc. (NASDAQ:FTNT)

This company has been moved to the archive! The financial data has not been updated since May 8, 2023.

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Fortinet Inc., adjustment to net income attributable to Fortinet, Inc.

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income attributable to Fortinet, Inc. (as reported) 857,300 606,800 488,500 326,500 332,200
Add: Change in unrealized gains (losses) on investments (6,200) (3,500) (200) 2,500 —
Net income attributable to Fortinet, Inc. (adjusted) 851,100 603,300 488,300 329,000 332,200

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Fortinet Inc., adjusted profitability ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 19.41% 18.16% 18.83% 15.14% 18.44%
Adjusted net profit margin 19.27% 18.05% 18.82% 15.26% 18.44%
Return on Equity (ROE)
Reported ROE — 77.63% 57.07% 24.70% 32.88%
Adjusted ROE — 77.18% 57.04% 24.89% 32.88%
Return on Assets (ROA)
Reported ROA 13.77% 10.25% 12.08% 8.40% 10.79%
Adjusted ROA 13.67% 10.19% 12.07% 8.47% 10.79%

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).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Fortinet Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Fortinet Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Fortinet Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Fortinet, Inc. 857,300 606,800 488,500 326,500 332,200
Revenue 4,417,400 3,342,200 2,594,400 2,156,200 1,801,200
Profitability Ratio
Net profit margin1 19.41% 18.16% 18.83% 15.14% 18.44%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Fortinet, Inc. 851,100 603,300 488,300 329,000 332,200
Revenue 4,417,400 3,342,200 2,594,400 2,156,200 1,801,200
Profitability Ratio
Adjusted net profit margin2 19.27% 18.05% 18.82% 15.26% 18.44%

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).

2022 Calculations

1 Net profit margin = 100 × Net income attributable to Fortinet, Inc. ÷ Revenue
= 100 × 857,300 ÷ 4,417,400 = 19.41%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Fortinet, Inc. ÷ Revenue
= 100 × 851,100 ÷ 4,417,400 = 19.27%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Fortinet Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Fortinet, Inc. 857,300 606,800 488,500 326,500 332,200
Total Fortinet, Inc. stockholders’ equity (deficit) (281,600) 781,700 856,000 1,321,900 1,010,200
Profitability Ratio
ROE1 — 77.63% 57.07% 24.70% 32.88%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Fortinet, Inc. 851,100 603,300 488,300 329,000 332,200
Total Fortinet, Inc. stockholders’ equity (deficit) (281,600) 781,700 856,000 1,321,900 1,010,200
Profitability Ratio
Adjusted ROE2 — 77.18% 57.04% 24.89% 32.88%

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).

2022 Calculations

1 ROE = 100 × Net income attributable to Fortinet, Inc. ÷ Total Fortinet, Inc. stockholders’ equity (deficit)
= 100 × 857,300 ÷ -281,600 = —

2 Adjusted ROE = 100 × Adjusted net income attributable to Fortinet, Inc. ÷ Total Fortinet, Inc. stockholders’ equity (deficit)
= 100 × 851,100 ÷ -281,600 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Fortinet, Inc. 857,300 606,800 488,500 326,500 332,200
Total assets 6,228,000 5,919,100 4,044,500 3,885,500 3,078,000
Profitability Ratio
ROA1 13.77% 10.25% 12.08% 8.40% 10.79%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Fortinet, Inc. 851,100 603,300 488,300 329,000 332,200
Total assets 6,228,000 5,919,100 4,044,500 3,885,500 3,078,000
Profitability Ratio
Adjusted ROA2 13.67% 10.19% 12.07% 8.47% 10.79%

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).

2022 Calculations

1 ROA = 100 × Net income attributable to Fortinet, Inc. ÷ Total assets
= 100 × 857,300 ÷ 6,228,000 = 13.77%

2 Adjusted ROA = 100 × Adjusted net income attributable to Fortinet, Inc. ÷ Total assets
= 100 × 851,100 ÷ 6,228,000 = 13.67%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Fortinet Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.