FORTINET, INC. (FTNT) FY2024 Annual Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2024-01-01 to 2024-12-31

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FORTINET, INC. cash flow reconciliation, Jan 1, 2024 through Dec 31, 2024One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income including non-controlling interests → Net cash from operating activities: $1,745,200,000.00Deferred revenue → Operating adjustments reconciliation: $577,800,000.00Amortization of deferred contract costs → Operating adjustments reconciliation: $293,700,000.00Stock-based compensation → Operating adjustments reconciliation: $257,900,000.00Inventory → Operating adjustments reconciliation: $131,200,000.00Depreciation and amortization → Operating adjustments reconciliation: $122,800,000.00Loss from equity method investments → Operating adjustments reconciliation: $29,400,000.00Operating adjustments reconciliation → Net cash from operating activities: $512,900,000.00Operating adjustments reconciliation → Deferred contract costs: $311,100,000.00Operating adjustments reconciliation → Deferred tax assets: $223,200,000.00Operating adjustments reconciliation → Accrued liabilities: $106,700,000.00Operating adjustments reconciliation → Gain on bargain purchase: $106,300,000.00Operating adjustments reconciliation → Amortization of investment premiums (discounts): $48,800,000.00Operating adjustments reconciliation → Accounts receivable—net: $45,400,000.00Operating adjustments reconciliation → Other: $15,200,000.00Operating adjustments reconciliation → Prepaid expenses and other current assets: $13,700,000.00Operating adjustments reconciliation → Other assets: $11,000,000.00Operating adjustments reconciliation → Accounts payable: $10,200,000.00Operating adjustments reconciliation → Other liabilities: $8,300,000.00Maturities of investments → investing reconciliation: $1,891,700,000.00Sales of investments → investing reconciliation: $500,000.00Other → investing reconciliation: $100,000.00investing reconciliation → Purchases of investments: $1,948,600,000.00investing reconciliation → Purchases of property and equipment: $378,900,000.00investing reconciliation → Payments made in connection with business combinations, net of cash acquired: $275,500,000.00investing reconciliation → Purchases of marketable equity securities: $16,700,000.00Net cash used in financing activities → financing reconciliation: $50,100,000.00Proceeds from issuance of common stock → financing reconciliation: $63,100,000.00financing reconciliation → Taxes paid related to net share settlement of equity awards: $100,900,000.00financing reconciliation → Other: $11,700,000.00financing reconciliation → Repurchase and retirement of common stock: $600,000.00Net cash used in investing activities → investing reconciliation: $727,400,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $1,397,900,000.00Net cash from operating activities → Cash sources and uses: $2,258,100,000.00Cash sources and uses → Exchange-rate effect: $2,600,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $2,875,900,000.00Cash sources and uses → Net cash used in investing activities: $727,400,000.00Cash sources and uses → Net cash used in financing activities: $50,100,000.00Other assets: -$11,000,000.00Other operating assets−$11.00 MOther: -$15,200,000.00Other non-cash items−$15.20 MPrepaid expenses and other current assets: -$13,700,000.00Prepaid & other assets−$13.70 MAccrued payroll and compensation: $0.00Other liabilities: -$8,300,000.00Accrued & other liabilities−$8.30 MGain on bargain purchase: -$106,300,000.00Gain on bargain purchase−$106.30 MAccounts payable: -$10,200,000.00Accounts payable−$10.20 MStock-based compensation: $257,900,000.00Stock-based compensation+$257.90 MLoss from equity method investments: $29,400,000.00Equity-method sale gain & loss+$29.40 MAmortization of investment premiums (discounts): -$48,800,000.00Investment discount & premium−$48.80 MAccounts receivable—net: -$45,400,000.00Accounts receivable−$45.40 MDepreciation and amortization: $122,800,000.00Depreciation & amortization+$122.80 MDeferred tax assets: -$223,200,000.00Deferred tax balances−$223.20 MNet income including non-controlling interests: $1,745,200,000.00Net income including non-controlling interests+$1.75 BAmortization of deferred contract costs: $293,700,000.00Contract cost amortization+$293.70 MDeferred contract costs: -$311,100,000.00Deferred costs−$311.10 MInventory: $131,200,000.00Inventories+$131.20 MAccrued liabilities: -$106,700,000.00Accrued liabilities−$106.70 MDeferred revenue: $577,800,000.00Deferred revenue+$577.80 MNet cash from operating activities: $2,258,100,000.00Operating cash+$2.26 BOperating adjustments reconciliation: $1,412,800,000.00Repurchase and retirement of common stock: -$600,000.00Common stock repurchases−$600.00 KProceeds from issuance of common stock: $63,100,000.00Common stock issued+$63.10 MOther: -$11,700,000.00Other financing, net−$11.70 MTaxes paid related to net share settlement of equity awards: -$100,900,000.00Stock-award tax withholding−$100.90 MNet cash used in financing activities: -$50,100,000.00. Cash required to fund net payments.Financing cash−$50.10 Mfinancing reconciliation: $113,200,000.00Purchases of marketable equity securities: -$16,700,000.00Equity securities purchases−$16.70 MOther: $100,000.00Other investing, net+$100.00 KPurchases of property and equipment: -$378,900,000.00Capital expenditures−$378.90 MPurchases of investments in privately held companies: $0.00Sales of investments: $500,000.00AFS securities sales+$500.00 KPurchases of investments: -$1,948,600,000.00Other investment purchases−$1.95 BPayments made in connection with business combinations, net of cash acquired: -$275,500,000.00Acquisitions, net of cash−$275.50 MMaturities of investments: $1,891,700,000.00AFS securities maturities+$1.89 BNet cash used in investing activities: -$727,400,000.00. Cash required to fund net payments.Investing cash−$727.40 Minvesting reconciliation: $2,619,700,000.00Cash sources and uses: $3,656,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $1,397,900,000.00Beginning cash$1.40 BEnding cash: Cash, cash equivalents, and restricted cash: $2,875,900,000.00Ending cash$2.88 BExchange-rate effect: -$2,600,000.00FX effect−$2.60 MCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$1.88 BOperating cash − cash spent on productive assetsCash flow / Net income1.29×Operating cash flow ÷ net incomeNet cash change+$1.48 BEnding cash − beginning cash
Chart details

FORTINET, INC. cash flow reconciliation, Jan 1, 2024 through Dec 31, 2024

Cash flows for Jan 1, 2024 through Dec 31, 2024. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Dec 31, 2023. Ending cash: Dec 31, 2024. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Dec 31, 2023
1,397,900,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
2,258,100,000 US dollars. Net cash provided.
Other assets
negative 11,000,000 US dollars
Other
negative 15,200,000 US dollars
Prepaid expenses and other current assets
negative 13,700,000 US dollars
Accrued payroll and compensation
0 US dollars
Other liabilities
negative 8,300,000 US dollars
Gain on bargain purchase
negative 106,300,000 US dollars
Accounts payable
negative 10,200,000 US dollars
Stock-based compensation
257,900,000 US dollars
Loss from equity method investments
29,400,000 US dollars
Amortization of investment premiums (discounts)
negative 48,800,000 US dollars
Accounts receivable—net
negative 45,400,000 US dollars
Depreciation and amortization
122,800,000 US dollars
Deferred tax assets
negative 223,200,000 US dollars
Net income including non-controlling interests
1,745,200,000 US dollars
Amortization of deferred contract costs
293,700,000 US dollars
Deferred contract costs
negative 311,100,000 US dollars
Inventory
131,200,000 US dollars
Accrued liabilities
negative 106,700,000 US dollars
Deferred revenue
577,800,000 US dollars
Investing activities
negative 727,400,000 US dollars. Net cash used.
Purchases of marketable equity securities
negative 16,700,000 US dollars
Other
100,000 US dollars
Purchases of property and equipment
negative 378,900,000 US dollars
Purchases of investments in privately held companies
0 US dollars
Sales of investments
500,000 US dollars
Purchases of investments
negative 1,948,600,000 US dollars
Payments made in connection with business combinations, net of cash acquired
negative 275,500,000 US dollars
Maturities of investments
1,891,700,000 US dollars
Financing activities
negative 50,100,000 US dollars. Net cash used.
Repurchase and retirement of common stock
negative 600,000 US dollars
Proceeds from issuance of common stock
63,100,000 US dollars
Other
negative 11,700,000 US dollars
Taxes paid related to net share settlement of equity awards
negative 100,900,000 US dollars
Operating adjustment reconciliation
1,412,800,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
113,200,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
2,619,700,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
negative 2,600,000 US dollars
Ending cash on Dec 31, 2024
2,875,900,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
3,656,000,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
1,478,000,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
1.29×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
2,258,100,000 US dollars. Operating cash flow used in the free cash flow calculation.
cash spent on productive assets
378,900,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
1,879,200,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income enters operating cash directly in the reconciliation. The adjustment junction contributes the remaining $512.90M after reconciling the other positive and negative adjustments. These connections depict an accounting reconciliation, not traced cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash spent on productive assets equals free cash flow: 2,258,100,000 US dollars minus 378,900,000 US dollars equals 1,879,200,000 US dollars.
FORTINET, INC. (FTNT) FY2024 Annual Statement of Cash Flows Sankey chart
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