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 Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Fortinet Inc., profitability ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Return on Sales
Gross profit margin 75.44% 76.57% 78.03% 76.54% 74.99%
Operating profit margin 21.95% 19.46% 20.50% 15.96% 12.82%
Net profit margin 19.41% 18.16% 18.83% 15.14% 18.44%
Return on Investment
Return on equity (ROE) 77.63% 57.07% 24.70% 32.88%
Return on assets (ROA) 13.77% 10.25% 12.08% 8.40% 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
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Fortinet Inc. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Fortinet Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Fortinet Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

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

Gross Profit Margin

Fortinet Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Gross profit 3,332,500 2,559,200 2,024,400 1,650,300 1,350,800
Revenue 4,417,400 3,342,200 2,594,400 2,156,200 1,801,200
Profitability Ratio
Gross profit margin1 75.44% 76.57% 78.03% 76.54% 74.99%
Benchmarks
Gross Profit Margin, Competitors2
Accenture PLC 31.99% 32.38% 31.53% 30.81%
Adobe Inc. 87.70% 88.18% 86.62% 85.03% 86.77%
Autodesk Inc. 90.46% 91.11% 90.08% 88.87%
Cadence Design Systems Inc. 89.57% 89.73% 88.61% 88.60%
CrowdStrike Holdings Inc. 73.60% 73.75% 70.58%
International Business Machines Corp. 54.00% 54.90% 48.32% 47.30%
Intuit Inc. 81.09% 82.53% 82.05% 82.80%
Microsoft Corp. 68.40% 68.93% 67.78% 65.90%
Oracle Corp. 79.08% 80.59% 79.68% 79.76%
Palo Alto Networks Inc. 68.76% 70.05% 70.68% 72.12%
Salesforce Inc. 73.48% 74.41% 75.23% 74.02%
ServiceNow Inc. 78.29% 77.05% 78.16% 76.98%
Synopsys Inc. 79.07% 79.50% 78.44% 77.60% 76.42%

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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 3,332,500 ÷ 4,417,400 = 75.44%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Fortinet Inc. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Operating Profit Margin

Fortinet Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Operating income 969,600 650,400 531,800 344,200 231,000
Revenue 4,417,400 3,342,200 2,594,400 2,156,200 1,801,200
Profitability Ratio
Operating profit margin1 21.95% 19.46% 20.50% 15.96% 12.82%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 15.21% 15.08% 14.69% 14.59%
Adobe Inc. 34.64% 36.76% 32.93% 29.25% 31.45%
Autodesk Inc. 14.08% 16.60% 10.48% -0.97%
Cadence Design Systems Inc. 30.15% 26.07% 24.06% 21.05%
CrowdStrike Holdings Inc. -9.82% -10.58% -30.34%
International Business Machines Corp. 13.50% 11.97% 9.22% 13.67%
Intuit Inc. 20.20% 25.95% 28.34% 27.33%
Microsoft Corp. 42.06% 41.59% 37.03% 34.14%
Oracle Corp. 25.74% 37.58% 35.57% 34.26%
Palo Alto Networks Inc. -3.43% -7.15% -5.25% -1.87%
Salesforce Inc. 2.07% 2.14% 1.74% 4.03%
ServiceNow Inc. 4.90% 4.36% 4.40% 1.22%
Synopsys Inc. 22.87% 17.48% 16.83% 15.48% 11.54%
Operating Profit Margin, Sector
Software & Services 27.74% 28.66% 24.84% 24.12%
Operating Profit Margin, Industry
Information Technology 28.31% 28.72% 24.93% 25.33%

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
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 969,600 ÷ 4,417,400 = 21.95%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Fortinet Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Net Profit Margin

Fortinet Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
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%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.17% 11.69% 11.52% 11.06%
Adobe Inc. 27.01% 30.55% 40.88% 26.42% 28.69%
Autodesk Inc. 11.33% 31.88% 6.55% -3.14%
Cadence Design Systems Inc. 23.84% 23.29% 22.02% 42.33%
CrowdStrike Holdings Inc. -16.18% -10.59% -29.45%
International Business Machines Corp. 2.71% 10.01% 7.59% 12.22%
Intuit Inc. 16.23% 21.41% 23.78% 22.95%
Microsoft Corp. 36.69% 36.45% 30.96% 31.18%
Oracle Corp. 15.83% 33.96% 25.94% 28.05%
Palo Alto Networks Inc. -4.85% -11.72% -7.83% -2.82%
Salesforce Inc. 5.45% 19.16% 0.74% 8.36%
ServiceNow Inc. 4.49% 3.90% 2.62% 18.11%
Synopsys Inc. 19.38% 18.02% 18.03% 15.84% 13.86%
Net Profit Margin, Sector
Software & Services 22.02% 25.95% 20.66% 21.76%
Net Profit Margin, Industry
Information Technology 23.93% 25.58% 21.38% 22.17%

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

2 Click competitor name to see calculations.

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

Return on Equity (ROE)

Fortinet Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
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%
Benchmarks
ROE, Competitors2
Accenture PLC 31.11% 30.25% 30.05% 33.17%
Adobe Inc. 33.85% 32.59% 39.66% 28.03% 27.67%
Autodesk Inc. 58.53% 125.14%
Cadence Design Systems Inc. 30.93% 25.39% 23.69% 47.03%
CrowdStrike Holdings Inc. -22.89% -10.64% -19.10%
International Business Machines Corp. 7.47% 30.38% 27.14% 45.25%
Intuit Inc. 12.57% 20.89% 35.76% 41.53%
Microsoft Corp. 43.68% 43.15% 37.43% 38.35%
Oracle Corp. 262.43% 83.94% 50.87%
Palo Alto Networks Inc. -127.14% -78.63% -24.23% -5.16%
Salesforce Inc. 2.48% 9.81% 0.37% 7.11%
ServiceNow Inc. 6.46% 6.22% 4.18% 29.45%
Synopsys Inc. 17.85% 14.31% 13.54% 13.04% 12.43%
ROE, Sector
Software & Services 31.91% 37.56% 31.66% 36.26%
ROE, Industry
Information Technology 38.36% 42.36% 35.12% 36.53%

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

2 Click competitor name to see calculations.


Return on Assets (ROA)

Fortinet Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
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%
Benchmarks
ROA, Competitors2
Accenture PLC 14.55% 13.68% 13.78% 16.04%
Adobe Inc. 17.51% 17.70% 21.66% 14.22% 13.80%
Autodesk Inc. 5.77% 16.60% 3.47% -1.71%
Cadence Design Systems Inc. 16.53% 15.87% 14.95% 29.46%
CrowdStrike Holdings Inc. -6.49% -3.39% -10.09%
International Business Machines Corp. 1.29% 4.35% 3.58% 6.20%
Intuit Inc. 7.45% 13.29% 16.70% 24.78%
Microsoft Corp. 19.94% 18.36% 14.70% 13.69%
Oracle Corp. 6.15% 10.48% 8.78% 10.20%
Palo Alto Networks Inc. -2.18% -4.87% -2.95% -1.24%
Salesforce Inc. 1.52% 6.14% 0.23% 3.61%
ServiceNow Inc. 2.44% 2.13% 1.36% 10.41%
Synopsys Inc. 10.45% 8.66% 8.27% 8.31% 7.04%
ROA, Sector
Software & Services 11.56% 12.60% 9.97% 10.89%
ROA, Industry
Information Technology 14.99% 15.62% 12.12% 12.78%

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

2 Click competitor name to see calculations.

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