Fortinet (STU:FO8) ROCE % : 53.56% (As of Sep. 2024)

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What is Fortinet ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Fortinet's annualized ROCE % for the quarter that ended in Sep. 2024 was 53.56%.

Fortinet ROCE % Historical Data

The historical data trend for Fortinet's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Fortinet ROCE % Chart

Fortinet Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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18.37

22.25

22.74

29.84

39.95

Fortinet Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															34.37	45.19	37.94	46.45	53.56

Fortinet ROCE % Calculation

Fortinet's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1242.26	/	( ( (5879.232 - 2906.01)	+	(6656.411 - 3410.323) )	/ 2 )
	=	1242.26	/	( (2973.222	+	3246.088)	/ 2 )
	=	1242.26	/	3109.655
	=	39.95 %

Fortinet's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	2275.564	/	( ( (7481.144 - 3460.804)	+	(7975.652 - 3499.394) )	/ 2 )
	=	2275.564	/	( ( 4020.34	+	4476.258 )	/ 2 )
	=	2275.564	/	4248.299
	=	53.56 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Fortinet (STU:FO8) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Fortinet Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Fortinet Inc (STU:FO8) » Definitions » ROCE %

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Address

909 Kifer Road, Sunnyvale, CA, USA, 94086

Website

https://www.fortinet.com

Fortinet is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, zero-trust access, and security operations. The firm derives a majority of its revenue through sales of its subscriptions and support-based business. The California-based firm has more than 700,000 customers across the world.

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