Fortinet Inc., balance sheet: property, plant and equipment

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Land	310,000)	204,500)	93,300)	93,300)	75,700)
Buildings and improvements	490,300)	416,200)	150,600)	147,400)	144,200)
Computer equipment and software	222,700)	176,100)	137,200)	116,700)	95,900)
Leasehold improvements	53,500)	40,100)	31,900)	25,500)	17,900)
Evaluation units	19,200)	15,600)	19,800)	19,900)	20,500)
Furniture and fixtures	31,300)	26,900)	21,300)	17,300)	15,700)
Construction-in-progress	51,700)	19,900)	166,400)	61,200)	12,300)
Property and equipment, gross	1,178,700)	899,300)	620,500)	481,300)	382,200)
Accumulated depreciation	(280,200)	(211,700)	(172,500)	(137,000)	(110,800)
Property and equipment, net	898,500)	687,600)	448,000)	344,300)	271,400)

Download chart

Item	Description	The company
Property and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Fortinet Inc. property and equipment, gross increased from 2020 to 2021 and from 2021 to 2022.
Property and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Fortinet Inc. property and equipment, net increased from 2020 to 2021 and from 2021 to 2022.

Fortinet Inc., asset age ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Average age ratio	32.26%	30.47%	32.72%	35.31%	36.15%
Estimated total useful life (years)	11	11	9	8	7
Estimated age, time elapsed since purchase (years)	3	3	3	3	2
Estimated remaining life (years)	7	7	6	5	4

Download chart

Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Fortinet Inc. average age ratio of depreciable property, plant and equipment improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Fortinet Inc. estimated total useful life of depreciable property, plant and equipment increased from 2020 to 2021 and from 2021 to 2022.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Fortinet Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2020 to 2021 and from 2021 to 2022.
Estimated remaining life		Fortinet Inc. estimated remaining life of depreciable property, plant and equipment increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Accumulated depreciation	280,200)	211,700)	172,500)	137,000)	110,800)
Property and equipment, gross	1,178,700)	899,300)	620,500)	481,300)	382,200)
Land	310,000)	204,500)	93,300)	93,300)	75,700)
Asset Age Ratio
Average age¹	32.26%	30.47%	32.72%	35.31%	36.15%

2022 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × 280,200 ÷ (1,178,700 – 310,000) = 32.26%

Download chart

Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Fortinet Inc. average age ratio of depreciable property, plant and equipment improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Property and equipment, gross	1,178,700)	899,300)	620,500)	481,300)	382,200)
Land	310,000)	204,500)	93,300)	93,300)	75,700)
Depreciation expense	81,000)	65,900)	55,500)	50,700)	46,700)
Asset Age Ratio (Years)
Estimated total useful life¹	11	11	9	8	7

2022 Calculations

¹ Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense
= (1,178,700 – 310,000) ÷ 81,000 = 11

Download chart

Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Fortinet Inc. estimated total useful life of depreciable property, plant and equipment increased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Accumulated depreciation	280,200)	211,700)	172,500)	137,000)	110,800)
Depreciation expense	81,000)	65,900)	55,500)	50,700)	46,700)
Asset Age Ratio (Years)
Time elapsed since purchase¹	3	3	3	3	2

2022 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 280,200 ÷ 81,000 = 3

Download chart

Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Fortinet Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Property and equipment, net	898,500)	687,600)	448,000)	344,300)	271,400)
Land	310,000)	204,500)	93,300)	93,300)	75,700)
Depreciation expense	81,000)	65,900)	55,500)	50,700)	46,700)
Asset Age Ratio (Years)
Estimated remaining life¹	7	7	6	5	4

2022 Calculations

¹ Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (898,500 – 310,000) ÷ 81,000 = 7

Download chart

Asset age ratio	Description	The company
Estimated remaining life		Fortinet Inc. estimated remaining life of depreciable property, plant and equipment increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Fortinet Inc. (NASDAQ:FTNT)

Analysis of Property, Plant and Equipment