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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Fortinet Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2022 — = 13.77% × —
Dec 31, 2021 77.63% = 10.25% × 7.57
Dec 31, 2020 57.07% = 12.08% × 4.72
Dec 31, 2019 24.70% = 8.40% × 2.94
Dec 31, 2018 32.88% = 10.79% × 3.05

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).

Three-Component Disaggregation of ROE

Fortinet Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2022 — = 19.41% × 0.71 × —
Dec 31, 2021 77.63% = 18.16% × 0.56 × 7.57
Dec 31, 2020 57.07% = 18.83% × 0.64 × 4.72
Dec 31, 2019 24.70% = 15.14% × 0.55 × 2.94
Dec 31, 2018 32.88% = 18.44% × 0.59 × 3.05

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).

Five-Component Disaggregation of ROE

Fortinet Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2022 — = 0.97 × 0.98 × 20.51% × 0.71 × —
Dec 31, 2021 77.63% = 0.98 × 0.98 × 19.02% × 0.56 × 7.57
Dec 31, 2020 57.07% = 0.90 × 1.00 × 20.88% × 0.64 × 4.72
Dec 31, 2019 24.70% = 0.86 × 1.00 × 17.59% × 0.55 × 2.94
Dec 31, 2018 32.88% = 1.32 × 1.00 × 13.93% × 0.59 × 3.05

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).

Two-Component Disaggregation of ROA

Fortinet Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2022 13.77% = 19.41% × 0.71
Dec 31, 2021 10.25% = 18.16% × 0.56
Dec 31, 2020 12.08% = 18.83% × 0.64
Dec 31, 2019 8.40% = 15.14% × 0.55
Dec 31, 2018 10.79% = 18.44% × 0.59

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).

The primary reason for the increase in return on assets ratio (ROA) over 2022 year is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Fortinet Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2022 13.77% = 0.97 × 0.98 × 20.51% × 0.71
Dec 31, 2021 10.25% = 0.98 × 0.98 × 19.02% × 0.56
Dec 31, 2020 12.08% = 0.90 × 1.00 × 20.88% × 0.64
Dec 31, 2019 8.40% = 0.86 × 1.00 × 17.59% × 0.55
Dec 31, 2018 10.79% = 1.32 × 1.00 × 13.93% × 0.59

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).

The primary reason for the increase in return on assets ratio (ROA) over 2022 year is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Fortinet Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2022 19.41% = 0.97 × 0.98 × 20.51%
Dec 31, 2021 18.16% = 0.98 × 0.98 × 19.02%
Dec 31, 2020 18.83% = 0.90 × 1.00 × 20.88%
Dec 31, 2019 15.14% = 0.86 × 1.00 × 17.59%
Dec 31, 2018 18.44% = 1.32 × 1.00 × 13.93%

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).

The primary reason for the increase in net profit margin ratio over 2022 year is the increase in operating profitability measured by EBIT margin ratio.