Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Fortinet Inc., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.24 | 1.55 | 1.50 | 1.88 | 1.77 | |
| Quick ratio | 1.13 | 1.45 | 1.40 | 1.77 | 1.67 | |
| Cash ratio | 0.72 | 1.10 | 1.00 | 1.40 | 1.31 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Fortinet Inc. current ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Fortinet Inc. quick ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Fortinet Inc. cash ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Current Ratio
Fortinet Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 3,810,400) | 3,600,600) | 2,740,400) | 2,769,000) | 2,220,900) | |
| Current liabilities | 3,078,400) | 2,318,100) | 1,829,500) | 1,473,600) | 1,256,400) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.24 | 1.55 | 1.50 | 1.88 | 1.77 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Accenture PLC | 1.23 | 1.25 | 1.40 | 1.40 | — | |
| Adobe Inc. | 1.11 | 1.25 | 1.48 | 0.79 | — | |
| Cadence Design Systems Inc. | 1.27 | 1.77 | 1.86 | 1.74 | — | |
| CrowdStrike Holdings Inc. | 1.83 | 2.65 | 2.38 | — | — | |
| International Business Machines Corp. | 0.92 | 0.88 | 0.98 | 1.02 | — | |
| Intuit Inc. | 1.39 | 1.94 | 2.26 | 1.83 | — | |
| Microsoft Corp. | 1.78 | 2.08 | 2.52 | 2.53 | — | |
| Oracle Corp. | 1.62 | 2.30 | 3.03 | 2.49 | — | |
| Palantir Technologies Inc. | 5.17 | 4.34 | 3.74 | — | — | |
| Palo Alto Networks Inc. | 0.77 | 0.91 | 1.91 | 1.78 | — | |
| Salesforce Inc. | 1.05 | 1.23 | 1.08 | 0.95 | — | |
| ServiceNow Inc. | 1.11 | 1.05 | 1.21 | 1.03 | — | |
| Synopsys Inc. | 1.09 | 1.16 | 1.19 | 0.99 | — | |
| Current Ratio, Sector | ||||||
| Software & Services | 1.44 | 1.68 | 1.93 | — | — | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.37 | 1.55 | 1.71 | — | — | |
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).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,810,400 ÷ 3,078,400 = 1.24
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Fortinet Inc. current ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Quick Ratio
Fortinet Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,682,900) | 1,319,100) | 1,061,800) | 1,222,500) | 1,112,400) | |
| Short-term investments | 502,600) | 1,194,000) | 775,500) | 843,100) | 537,200) | |
| Marketable equity securities | 25,500) | 38,600) | —) | —) | —) | |
| Accounts receivable, net of allowance for credit losses | 1,261,700) | 807,700) | 720,000) | 544,300) | 444,500) | |
| Total quick assets | 3,472,700) | 3,359,400) | 2,557,300) | 2,609,900) | 2,094,100) | |
| Current liabilities | 3,078,400) | 2,318,100) | 1,829,500) | 1,473,600) | 1,256,400) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.13 | 1.45 | 1.40 | 1.77 | 1.67 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Accenture PLC | 1.12 | 1.14 | 1.29 | 1.29 | — | |
| Adobe Inc. | 1.00 | 1.11 | 1.34 | 0.70 | — | |
| Cadence Design Systems Inc. | 1.02 | 1.47 | 1.60 | 1.51 | — | |
| CrowdStrike Holdings Inc. | 1.68 | 2.50 | 2.18 | — | — | |
| International Business Machines Corp. | 0.76 | 0.69 | 0.83 | 0.87 | — | |
| Intuit Inc. | 1.17 | 1.65 | 2.04 | 1.44 | — | |
| Microsoft Corp. | 1.57 | 1.90 | 2.33 | 2.35 | — | |
| Oracle Corp. | 1.43 | 2.15 | 2.83 | 2.31 | — | |
| Palantir Technologies Inc. | 4.92 | 4.11 | 3.59 | — | — | |
| Palo Alto Networks Inc. | 0.75 | 0.88 | 1.85 | 1.72 | — | |
| Salesforce Inc. | 0.93 | 1.11 | 0.95 | 0.82 | — | |
| ServiceNow Inc. | 1.06 | 1.01 | 1.16 | 0.98 | — | |
| Synopsys Inc. | 0.85 | 0.89 | 0.94 | 0.73 | — | |
| Quick Ratio, Sector | ||||||
| Software & Services | 1.26 | 1.52 | 1.76 | — | — | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.09 | 1.30 | 1.47 | — | — | |
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).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,472,700 ÷ 3,078,400 = 1.13
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Fortinet Inc. quick ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Cash Ratio
Fortinet Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,682,900) | 1,319,100) | 1,061,800) | 1,222,500) | 1,112,400) | |
| Short-term investments | 502,600) | 1,194,000) | 775,500) | 843,100) | 537,200) | |
| Marketable equity securities | 25,500) | 38,600) | —) | —) | —) | |
| Total cash assets | 2,211,000) | 2,551,700) | 1,837,300) | 2,065,600) | 1,649,600) | |
| Current liabilities | 3,078,400) | 2,318,100) | 1,829,500) | 1,473,600) | 1,256,400) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.72 | 1.10 | 1.00 | 1.40 | 1.31 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Accenture PLC | 0.45 | 0.52 | 0.67 | 0.55 | — | |
| Adobe Inc. | 0.75 | 0.84 | 1.09 | 0.51 | — | |
| Cadence Design Systems Inc. | 0.66 | 1.13 | 1.17 | 1.06 | — | |
| CrowdStrike Holdings Inc. | 1.42 | 2.22 | 1.85 | — | — | |
| International Business Machines Corp. | 0.28 | 0.22 | 0.36 | 0.24 | — | |
| Intuit Inc. | 0.90 | 1.46 | 2.00 | 1.39 | — | |
| Microsoft Corp. | 1.10 | 1.47 | 1.89 | 1.93 | — | |
| Oracle Corp. | 1.12 | 1.93 | 2.50 | 2.03 | — | |
| Palantir Technologies Inc. | 4.48 | 3.83 | 3.33 | — | — | |
| Palo Alto Networks Inc. | 0.44 | 0.57 | 1.39 | 1.37 | — | |
| Salesforce Inc. | 0.48 | 0.67 | 0.54 | 0.39 | — | |
| ServiceNow Inc. | 0.71 | 0.67 | 0.83 | 0.61 | — | |
| Synopsys Inc. | 0.56 | 0.65 | 0.58 | 0.42 | — | |
| Cash Ratio, Sector | ||||||
| Software & Services | 0.82 | 1.11 | 1.33 | — | — | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.66 | 0.89 | 1.07 | — | — | |
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).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,211,000 ÷ 3,078,400 = 0.72
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Fortinet Inc. cash ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |