Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Fortinet Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Fortinet Inc. inventory turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Fortinet Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Fortinet Inc. payables turnover ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Fortinet Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Fortinet Inc. number of days of inventory outstanding improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Fortinet Inc. number of days of receivables outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Fortinet Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Fortinet Inc. number of days of payables outstanding decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Fortinet Inc. cash conversion cycle deteriorated from 2020 to 2021 and from 2021 to 2022. |
Inventory Turnover
Fortinet Inc., inventory turnover 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) | ||||||
| Cost of revenue | 1,084,900) | 783,000) | 570,000) | 505,900) | 450,400) | |
| Inventory | 264,600) | 175,800) | 139,800) | 117,900) | 90,000) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 4.10 | 4.45 | 4.08 | 4.29 | 5.00 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Cadence Design Systems Inc. | 2.90 | 2.65 | 4.02 | 4.77 | — | |
| International Business Machines Corp. | 17.94 | 15.68 | 20.69 | 25.11 | — | |
| Microsoft Corp. | 16.74 | 19.81 | 24.32 | 20.80 | — | |
| Oracle Corp. | 28.27 | 55.32 | 37.62 | 24.98 | — | |
| Synopsys Inc. | 5.02 | 3.76 | 4.13 | 5.32 | — | |
| Inventory Turnover, Sector | ||||||
| Software & Services | 26.63 | 27.97 | 31.64 | — | — | |
| Inventory Turnover, Industry | ||||||
| Information Technology | 8.59 | 10.42 | 11.15 | — | — | |
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
Inventory turnover = Cost of revenue ÷ Inventory
= 1,084,900 ÷ 264,600 = 4.10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Fortinet Inc. inventory turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Receivables Turnover
Fortinet Inc., receivables turnover 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) | ||||||
| Revenue | 4,417,400) | 3,342,200) | 2,594,400) | 2,156,200) | 1,801,200) | |
| Accounts receivable, net of allowance for credit losses | 1,261,700) | 807,700) | 720,000) | 544,300) | 444,500) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 3.50 | 4.14 | 3.60 | 3.96 | 4.05 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Accenture PLC | 5.87 | 5.74 | 6.16 | 5.79 | — | |
| Adobe Inc. | 8.53 | 8.41 | 9.20 | 7.28 | — | |
| Cadence Design Systems Inc. | 7.32 | 8.85 | 7.93 | 7.67 | — | |
| CrowdStrike Holdings Inc. | 3.94 | 3.66 | 2.92 | — | — | |
| International Business Machines Corp. | 9.25 | 8.49 | 10.32 | 9.80 | — | |
| Intuit Inc. | 28.53 | 24.64 | 51.54 | 77.98 | — | |
| Microsoft Corp. | 4.48 | 4.42 | 4.47 | 4.26 | — | |
| Oracle Corp. | 7.13 | 7.48 | 7.04 | 7.69 | — | |
| Palantir Technologies Inc. | 7.38 | 8.08 | 6.96 | — | — | |
| Palo Alto Networks Inc. | 2.57 | 3.43 | 3.29 | 4.98 | — | |
| Salesforce Inc. | 2.72 | 2.73 | 2.77 | 2.70 | — | |
| ServiceNow Inc. | 4.20 | 4.24 | 4.48 | 4.14 | — | |
| Synopsys Inc. | 6.38 | 7.40 | 4.72 | 6.07 | — | |
| Receivables Turnover, Sector | ||||||
| Software & Services | 5.21 | 5.24 | 5.60 | — | — | |
| Receivables Turnover, Industry | ||||||
| Information Technology | 7.45 | 7.55 | 7.95 | — | — | |
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
Receivables turnover = Revenue ÷ Accounts receivable, net of allowance for credit losses
= 4,417,400 ÷ 1,261,700 = 3.50
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Fortinet Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Payables Turnover
Fortinet Inc., payables turnover 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) | ||||||
| Cost of revenue | 1,084,900) | 783,000) | 570,000) | 505,900) | 450,400) | |
| Accounts payable | 243,400) | 148,400) | 141,600) | 96,400) | 86,400) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 4.46 | 5.28 | 4.03 | 5.25 | 5.21 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Accenture PLC | 16.37 | 15.03 | 22.48 | 18.16 | — | |
| Adobe Inc. | 5.71 | 5.98 | 5.63 | 7.98 | — | |
| Cadence Design Systems Inc. | 7.89 | — | — | — | — | |
| CrowdStrike Holdings Inc. | 8.05 | 19.03 | 105.30 | — | — | |
| International Business Machines Corp. | 6.87 | 6.54 | 7.75 | 8.30 | — | |
| Intuit Inc. | 3.26 | 2.70 | 4.52 | 4.26 | — | |
| Microsoft Corp. | 3.30 | 3.44 | 3.68 | 4.57 | — | |
| Oracle Corp. | 6.74 | 10.54 | 12.46 | 13.78 | — | |
| Palantir Technologies Inc. | 9.12 | 4.53 | 21.55 | — | — | |
| Palo Alto Networks Inc. | 13.43 | 22.41 | 15.72 | 11.03 | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | 5.74 | 15.20 | 28.83 | 15.04 | — | |
| Synopsys Inc. | 28.30 | 31.44 | 26.49 | 38.00 | — | |
| Payables Turnover, Sector | ||||||
| Software & Services | 5.53 | 5.72 | 6.61 | — | — | |
| Payables Turnover, Industry | ||||||
| Information Technology | 4.24 | 4.62 | 4.91 | — | — | |
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
Payables turnover = Cost of revenue ÷ Accounts payable
= 1,084,900 ÷ 243,400 = 4.46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Fortinet Inc. payables turnover ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
Working Capital Turnover
Fortinet Inc., working capital turnover 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) | |
| Less: Current liabilities | 3,078,400) | 2,318,100) | 1,829,500) | 1,473,600) | 1,256,400) | |
| Working capital | 732,000) | 1,282,500) | 910,900) | 1,295,400) | 964,500) | |
| Revenue | 4,417,400) | 3,342,200) | 2,594,400) | 2,156,200) | 1,801,200) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 6.03 | 2.61 | 2.85 | 1.66 | 1.87 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Accenture PLC | 15.07 | 12.77 | 8.71 | 9.85 | — | |
| Adobe Inc. | 20.28 | 9.09 | 4.89 | — | — | |
| Cadence Design Systems Inc. | 9.92 | 4.01 | 3.94 | 4.70 | — | |
| CrowdStrike Holdings Inc. | 1.25 | 0.61 | 0.71 | — | — | |
| International Business Machines Corp. | — | — | — | 107.30 | — | |
| Intuit Inc. | 8.98 | 3.85 | 1.73 | 4.17 | — | |
| Microsoft Corp. | 2.66 | 1.76 | 1.30 | 1.19 | — | |
| Oracle Corp. | 3.50 | 1.29 | 1.12 | 1.42 | — | |
| Palantir Technologies Inc. | 0.78 | 0.70 | 0.66 | — | — | |
| Palo Alto Networks Inc. | — | — | 1.40 | 1.80 | — | |
| Salesforce Inc. | 24.95 | 5.11 | 15.29 | — | — | |
| ServiceNow Inc. | 11.16 | 21.76 | 5.76 | 46.69 | — | |
| Synopsys Inc. | 21.34 | 10.65 | 9.00 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Software & Services | 4.69 | 2.73 | 2.16 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Information Technology | 6.45 | 4.32 | 3.29 | — | — | |
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
Working capital turnover = Revenue ÷ Working capital
= 4,417,400 ÷ 732,000 = 6.03
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Fortinet Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Inventory Processing Period
Fortinet Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 4.10 | 4.45 | 4.08 | 4.29 | 5.00 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 89 | 82 | 90 | 85 | 73 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Cadence Design Systems Inc. | 126 | 138 | 91 | 76 | — | |
| International Business Machines Corp. | 20 | 23 | 18 | 15 | — | |
| Microsoft Corp. | 22 | 18 | 15 | 18 | — | |
| Oracle Corp. | 13 | 7 | 10 | 15 | — | |
| Synopsys Inc. | 73 | 97 | 88 | 69 | — | |
| Average Inventory Processing Period, Sector | ||||||
| Software & Services | 14 | 13 | 12 | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Information Technology | 43 | 35 | 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.10 = 89
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Fortinet Inc. number of days of inventory outstanding improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Average Receivable Collection Period
Fortinet Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 3.50 | 4.14 | 3.60 | 3.96 | 4.05 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 104 | 88 | 101 | 92 | 90 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Accenture PLC | 62 | 64 | 59 | 63 | — | |
| Adobe Inc. | 43 | 43 | 40 | 50 | — | |
| Cadence Design Systems Inc. | 50 | 41 | 46 | 48 | — | |
| CrowdStrike Holdings Inc. | 93 | 100 | 125 | — | — | |
| International Business Machines Corp. | 39 | 43 | 35 | 37 | — | |
| Intuit Inc. | 13 | 15 | 7 | 5 | — | |
| Microsoft Corp. | 81 | 83 | 82 | 86 | — | |
| Oracle Corp. | 51 | 49 | 52 | 47 | — | |
| Palantir Technologies Inc. | 49 | 45 | 52 | — | — | |
| Palo Alto Networks Inc. | 142 | 106 | 111 | 73 | — | |
| Salesforce Inc. | 134 | 134 | 132 | 135 | — | |
| ServiceNow Inc. | 87 | 86 | 82 | 88 | — | |
| Synopsys Inc. | 57 | 49 | 77 | 60 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Software & Services | 70 | 70 | 65 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Information Technology | 49 | 48 | 46 | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 3.50 = 104
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Fortinet Inc. number of days of receivables outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Operating Cycle
Fortinet Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 89 | 82 | 90 | 85 | 73 | |
| Average receivable collection period | 104 | 88 | 101 | 92 | 90 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 193 | 170 | 191 | 177 | 163 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Cadence Design Systems Inc. | 176 | 179 | 137 | 124 | — | |
| International Business Machines Corp. | 59 | 66 | 53 | 52 | — | |
| Microsoft Corp. | 103 | 101 | 97 | 104 | — | |
| Oracle Corp. | 64 | 56 | 62 | 62 | — | |
| Synopsys Inc. | 130 | 146 | 165 | 129 | — | |
| Operating Cycle, Sector | ||||||
| Software & Services | 84 | 83 | 77 | — | — | |
| Operating Cycle, Industry | ||||||
| Information Technology | 92 | 83 | 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).
1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 89 + 104 = 193
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Fortinet Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Payables Payment Period
Fortinet Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 4.46 | 5.28 | 4.03 | 5.25 | 5.21 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 82 | 69 | 91 | 70 | 70 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Accenture PLC | 22 | 24 | 16 | 20 | — | |
| Adobe Inc. | 64 | 61 | 65 | 46 | — | |
| Cadence Design Systems Inc. | 46 | — | — | — | — | |
| CrowdStrike Holdings Inc. | 45 | 19 | 3 | — | — | |
| International Business Machines Corp. | 53 | 56 | 47 | 44 | — | |
| Intuit Inc. | 112 | 135 | 81 | 86 | — | |
| Microsoft Corp. | 111 | 106 | 99 | 80 | — | |
| Oracle Corp. | 54 | 35 | 29 | 26 | — | |
| Palantir Technologies Inc. | 40 | 81 | 17 | — | — | |
| Palo Alto Networks Inc. | 27 | 16 | 23 | 33 | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | 64 | 24 | 13 | 24 | — | |
| Synopsys Inc. | 13 | 12 | 14 | 10 | — | |
| Average Payables Payment Period, Sector | ||||||
| Software & Services | 66 | 64 | 55 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Information Technology | 86 | 79 | 74 | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.46 = 82
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Fortinet Inc. number of days of payables outstanding decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level. |
Cash Conversion Cycle
Fortinet Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 89 | 82 | 90 | 85 | 73 | |
| Average receivable collection period | 104 | 88 | 101 | 92 | 90 | |
| Average payables payment period | 82 | 69 | 91 | 70 | 70 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 111 | 101 | 100 | 107 | 93 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Cadence Design Systems Inc. | 130 | — | — | — | — | |
| International Business Machines Corp. | 6 | 10 | 6 | 8 | — | |
| Microsoft Corp. | -8 | -5 | -2 | 24 | — | |
| Oracle Corp. | 10 | 21 | 33 | 36 | — | |
| Synopsys Inc. | 117 | 134 | 151 | 119 | — | |
| Cash Conversion Cycle, Sector | ||||||
| Software & Services | 18 | 19 | 22 | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Information Technology | 6 | 4 | 5 | — | — | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 89 + 104 – 82 = 111
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Fortinet Inc. cash conversion cycle deteriorated from 2020 to 2021 and from 2021 to 2022. |