FORTINET, INC. (FTNT) FY2024 Q3 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2024-07-01 to 2024-09-30

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FORTINET, INC. cash flow reconciliation, Jul 1, 2024 through Sep 30, 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 → Net cash from operating activities: $539,900,000.00Amortization of deferred contract costs → Operating adjustments reconciliation: $73,600,000.00Deferred revenue → Operating adjustments reconciliation: $72,700,000.00Stock-based compensation → Operating adjustments reconciliation: $65,900,000.00Accounts receivable—net → Operating adjustments reconciliation: $57,600,000.00Accounts payable → Operating adjustments reconciliation: $35,200,000.00Depreciation and amortization → Operating adjustments reconciliation: $29,800,000.00Inventory → Operating adjustments reconciliation: $19,700,000.00Accrued payroll and compensation → Operating adjustments reconciliation: $16,400,000.00Loss from equity method investments → Operating adjustments reconciliation: $5,300,000.00Prepaid expenses and other current assets → Operating adjustments reconciliation: $3,300,000.00Operating adjustments reconciliation → Net cash from operating activities: $68,200,000.00Operating adjustments reconciliation → Gain on bargain purchase: $106,300,000.00Operating adjustments reconciliation → Deferred contract costs: $76,200,000.00Operating adjustments reconciliation → Deferred tax assets: $57,300,000.00Operating adjustments reconciliation → Accrued liabilities: $47,400,000.00Operating adjustments reconciliation → Amortization of investment discounts: $12,400,000.00Operating adjustments reconciliation → Other: $10,300,000.00Operating adjustments reconciliation → Other assets: $1,200,000.00Operating adjustments reconciliation → Other liabilities: $200,000.00Proceeds from issuance of common stock → financing reconciliation: $20,100,000.00financing reconciliation → Net cash from financing activities: $3,000,000.00financing reconciliation → Taxes paid related to net share settlement of equity awards: $16,500,000.00financing reconciliation → Repurchase and retirement of common stock: $600,000.00Net cash used in investing activities → investing reconciliation: $327,100,000.00Maturities of investments → investing reconciliation: $478,100,000.00Other → investing reconciliation: $100,000.00investing reconciliation → Purchases of investments: $511,000,000.00investing reconciliation → Payments made in connection with business combinations, net of cash acquired: $241,300,000.00investing reconciliation → Purchases of property and equipment: $36,300,000.00investing reconciliation → Purchases of marketable equity securities: $16,700,000.00Exchange-rate effect → Cash sources and uses: $2,100,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $2,203,200,000.00Net cash from operating activities → Cash sources and uses: $608,100,000.00Net cash from financing activities → Cash sources and uses: $3,000,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $2,489,300,000.00Cash sources and uses → Net cash used in investing activities: $327,100,000.00Amortization of investment discounts: -$12,400,000.00Investment discount & premium−$12.40 MInventory: $19,700,000.00Inventories+$19.70 MDeferred revenue: $72,700,000.00Deferred revenue+$72.70 MStock-based compensation: $65,900,000.00Stock-based compensation+$65.90 MAmortization of deferred contract costs: $73,600,000.00Contract cost amortization+$73.60 MOther liabilities: -$200,000.00Accrued & other liabilities−$200.00 KPrepaid expenses and other current assets: $3,300,000.00Prepaid & other assets+$3.30 MDeferred tax assets: -$57,300,000.00Deferred tax balances−$57.30 MOther assets: -$1,200,000.00Other operating assets−$1.20 MOther: -$10,300,000.00Other non-cash items−$10.30 MAccounts payable: $35,200,000.00Accounts payable+$35.20 MAccounts receivable—net: $57,600,000.00Accounts receivable+$57.60 MDepreciation and amortization: $29,800,000.00Depreciation & amortization+$29.80 MDeferred contract costs: -$76,200,000.00Deferred costs−$76.20 MAccrued liabilities: -$47,400,000.00Accrued liabilities−$47.40 MAccrued payroll and compensation: $16,400,000.00Accrued compensation+$16.40 MLoss from equity method investments: $5,300,000.00Equity-method sale gain & loss+$5.30 MNet income: $539,900,000.00Net income+$539.90 MGain on bargain purchase: -$106,300,000.00Gain on bargain purchase−$106.30 MNet cash from operating activities: $608,100,000.00Operating cash+$608.10 MOperating adjustments reconciliation: $379,500,000.00Proceeds from issuance of common stock: $20,100,000.00Common stock issued+$20.10 MTaxes paid related to net share settlement of equity awards: -$16,500,000.00Stock-award tax withholding−$16.50 MOther: $0.00Repurchase and retirement of common stock: -$600,000.00Common stock repurchases−$600.00 KNet cash from financing activities: $3,000,000.00Financing cash+$3.00 Mfinancing reconciliation: $20,100,000.00Purchase of investment in privately held company: $0.00Purchases of investments: -$511,000,000.00Other investment purchases−$511.00 MPurchases of property and equipment: -$36,300,000.00PP&E purchases−$36.30 MOther: $100,000.00Other investing, net+$100.00 KPurchases of marketable equity securities: -$16,700,000.00Equity securities purchases−$16.70 MMaturities of investments: $478,100,000.00AFS securities maturities+$478.10 MPayments made in connection with business combinations, net of cash acquired: -$241,300,000.00Acquisitions, net of cash−$241.30 MSales of investments: $0.00Net cash used in investing activities: -$327,100,000.00. Cash required to fund net payments.Investing cash−$327.10 Minvesting reconciliation: $805,300,000.00Cash sources and uses: $2,816,400,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $2,203,200,000.00Beginning cash$2.20 BEnding cash: Cash, cash equivalents, and restricted cash: $2,489,300,000.00Ending cash$2.49 BExchange-rate effect: $2,100,000.00FX effect+$2.10 MCASH RECONCILIATIONOperatingflowsFinancingflowsInvestingflowsFree cash flow$571.80 MOperating cash − cash spent on PP&ECash flow / Net income1.13×Operating cash flow ÷ net incomeNet cash change+$286.10 MEnding cash − beginning cash
Chart details

FORTINET, INC. cash flow reconciliation, Jul 1, 2024 through Sep 30, 2024

Cash flows for Jul 1, 2024 through Sep 30, 2024. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Jun 30, 2024. Ending cash: Sep 30, 2024. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Jun 30, 2024
2,203,200,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
608,100,000 US dollars. Net cash provided.
Net income
539,900,000 US dollars
Amortization of investment discounts
negative 12,400,000 US dollars
Inventory
19,700,000 US dollars
Deferred revenue
72,700,000 US dollars
Stock-based compensation
65,900,000 US dollars
Amortization of deferred contract costs
73,600,000 US dollars
Other liabilities
negative 200,000 US dollars
Prepaid expenses and other current assets
3,300,000 US dollars
Deferred tax assets
negative 57,300,000 US dollars
Other assets
negative 1,200,000 US dollars
Other
negative 10,300,000 US dollars
Accounts payable
35,200,000 US dollars
Accounts receivable—net
57,600,000 US dollars
Depreciation and amortization
29,800,000 US dollars
Deferred contract costs
negative 76,200,000 US dollars
Accrued liabilities
negative 47,400,000 US dollars
Accrued payroll and compensation
16,400,000 US dollars
Loss from equity method investments
5,300,000 US dollars
Gain on bargain purchase
negative 106,300,000 US dollars
Investing activities
negative 327,100,000 US dollars. Net cash used.
Purchase of investment in privately held company
0 US dollars
Purchases of investments
negative 511,000,000 US dollars
Purchases of property and equipment
negative 36,300,000 US dollars
Other
100,000 US dollars
Purchases of marketable equity securities
negative 16,700,000 US dollars
Maturities of investments
478,100,000 US dollars
Payments made in connection with business combinations, net of cash acquired
negative 241,300,000 US dollars
Sales of investments
0 US dollars
Financing activities
3,000,000 US dollars. Net cash provided.
Proceeds from issuance of common stock
20,100,000 US dollars
Taxes paid related to net share settlement of equity awards
negative 16,500,000 US dollars
Other
0 US dollars
Repurchase and retirement of common stock
negative 600,000 US dollars
Operating adjustment reconciliation
379,500,000 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
20,100,000 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
805,300,000 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
2,100,000 US dollars
Ending cash on Sep 30, 2024
2,489,300,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
2,816,400,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
286,100,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
1.13×. 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
608,100,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
36,300,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
571,800,000 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 $68.20M 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 purchases of property, plant and equipment equals free cash flow: 608,100,000 US dollars minus 36,300,000 US dollars equals 571,800,000 US dollars.
FORTINET, INC. (FTNT) FY2024 Q3 Statement of Cash Flows Sankey chart
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