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

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2024-01-01 to 2024-09-30

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FORTINET, INC. cash flow reconciliation, Jan 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: $1,219,000,000.00Accounts receivable—net → Operating adjustments reconciliation: $376,500,000.00Deferred revenue → Operating adjustments reconciliation: $234,400,000.00Amortization of deferred contract costs → Operating adjustments reconciliation: $218,300,000.00Stock-based compensation → Operating adjustments reconciliation: $192,100,000.00Inventory → Operating adjustments reconciliation: $104,900,000.00Depreciation and amortization → Operating adjustments reconciliation: $87,600,000.00Loss from equity method investments → Operating adjustments reconciliation: $23,900,000.00Other liabilities → Operating adjustments reconciliation: $500,000.00Operating adjustments reconciliation → Net cash from operating activities: $561,500,000.00Operating adjustments reconciliation → Deferred contract costs: $212,200,000.00Operating adjustments reconciliation → Deferred tax assets: $187,600,000.00Operating adjustments reconciliation → Gain on bargain purchase: $106,300,000.00Operating adjustments reconciliation → Accrued liabilities: $72,300,000.00Operating adjustments reconciliation → Amortization of investment discounts: $37,300,000.00Operating adjustments reconciliation → Accounts payable: $32,000,000.00Operating adjustments reconciliation → Prepaid expenses and other current assets: $9,000,000.00Operating adjustments reconciliation → Other assets: $8,800,000.00Operating adjustments reconciliation → Accrued payroll and compensation: $7,900,000.00Operating adjustments reconciliation → Other: $3,300,000.00Maturities of investments → investing reconciliation: $1,382,700,000.00Other → investing reconciliation: $100,000.00investing reconciliation → Purchases of investments: $1,485,300,000.00investing reconciliation → Purchases of property and equipment: $281,300,000.00investing reconciliation → Payments made in connection with business combinations, net of cash acquired: $247,000,000.00investing reconciliation → Purchases of marketable equity securities: $16,700,000.00Net cash used in financing activities → financing reconciliation: $41,300,000.00Proceeds from issuance of common stock → financing reconciliation: $39,700,000.00financing reconciliation → Taxes paid related to net share settlement of equity awards: $79,600,000.00financing reconciliation → Other: $800,000.00financing reconciliation → Repurchase and retirement of common stock: $600,000.00Net cash used in investing activities → investing reconciliation: $647,500,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $1,397,900,000.00Net cash from operating activities → Cash sources and uses: $1,780,500,000.00Cash sources and uses → Exchange-rate effect: $300,000.00Cash 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: $647,500,000.00Cash sources and uses → Net cash used in financing activities: $41,300,000.00Amortization of investment discounts: -$37,300,000.00Investment discount & premium−$37.30 MInventory: $104,900,000.00Inventories+$104.90 MDeferred revenue: $234,400,000.00Deferred revenue+$234.40 MStock-based compensation: $192,100,000.00Stock-based compensation+$192.10 MAmortization of deferred contract costs: $218,300,000.00Contract cost amortization+$218.30 MOther liabilities: $500,000.00Accrued & other liabilities+$500.00 KPrepaid expenses and other current assets: -$9,000,000.00Prepaid & other assets−$9.00 MDeferred tax assets: -$187,600,000.00Deferred tax balances−$187.60 MOther assets: -$8,800,000.00Other operating assets−$8.80 MOther: -$3,300,000.00Other non-cash items−$3.30 MAccounts payable: -$32,000,000.00Accounts payable−$32.00 MAccounts receivable—net: $376,500,000.00Accounts receivable+$376.50 MDepreciation and amortization: $87,600,000.00Depreciation & amortization+$87.60 MDeferred contract costs: -$212,200,000.00Deferred costs−$212.20 MAccrued liabilities: -$72,300,000.00Accrued liabilities−$72.30 MAccrued payroll and compensation: -$7,900,000.00Accrued compensation−$7.90 MLoss from equity method investments: $23,900,000.00Equity-method sale gain & loss+$23.90 MNet income: $1,219,000,000.00Net income+$1.22 BGain on bargain purchase: -$106,300,000.00Gain on bargain purchase−$106.30 MNet cash from operating activities: $1,780,500,000.00Operating cash+$1.78 BOperating adjustments reconciliation: $1,238,200,000.00Proceeds from issuance of common stock: $39,700,000.00Common stock issued+$39.70 MTaxes paid related to net share settlement of equity awards: -$79,600,000.00Stock-award tax withholding−$79.60 MOther: -$800,000.00Other financing, net−$800.00 KRepurchase and retirement of common stock: -$600,000.00Common stock repurchases−$600.00 KNet cash used in financing activities: -$41,300,000.00. Cash required to fund net payments.Financing cash−$41.30 Mfinancing reconciliation: $81,000,000.00Purchase of investment in privately held company: $0.00Purchases of investments: -$1,485,300,000.00Other investment purchases−$1.49 BPurchases of property and equipment: -$281,300,000.00PP&E purchases−$281.30 MOther: $100,000.00Other investing, net+$100.00 KPurchases of marketable equity securities: -$16,700,000.00Equity securities purchases−$16.70 MMaturities of investments: $1,382,700,000.00AFS securities maturities+$1.38 BPayments made in connection with business combinations, net of cash acquired: -$247,000,000.00Acquisitions, net of cash−$247.00 MSales of investments: $0.00Net cash used in investing activities: -$647,500,000.00. Cash required to fund net payments.Investing cash−$647.50 Minvesting reconciliation: $2,030,300,000.00Cash sources and uses: $3,178,400,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $1,397,900,000.00Beginning cash$1.40 BEnding cash: Cash, cash equivalents, and restricted cash: $2,489,300,000.00Ending cash$2.49 BExchange-rate effect: -$300,000.00FX effect−$300.00 KCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$1.50 BOperating cash − cash spent on PP&ECash flow / Net income1.46×Operating cash flow ÷ net incomeNet cash change+$1.09 BEnding cash − beginning cash
Chart details

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

Cash flows for Jan 1, 2024 through Sep 30, 2024. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Dec 31, 2023. 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 Dec 31, 2023
1,397,900,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
1,780,500,000 US dollars. Net cash provided.
Net income
1,219,000,000 US dollars
Amortization of investment discounts
negative 37,300,000 US dollars
Inventory
104,900,000 US dollars
Deferred revenue
234,400,000 US dollars
Stock-based compensation
192,100,000 US dollars
Amortization of deferred contract costs
218,300,000 US dollars
Other liabilities
500,000 US dollars
Prepaid expenses and other current assets
negative 9,000,000 US dollars
Deferred tax assets
negative 187,600,000 US dollars
Other assets
negative 8,800,000 US dollars
Other
negative 3,300,000 US dollars
Accounts payable
negative 32,000,000 US dollars
Accounts receivable—net
376,500,000 US dollars
Depreciation and amortization
87,600,000 US dollars
Deferred contract costs
negative 212,200,000 US dollars
Accrued liabilities
negative 72,300,000 US dollars
Accrued payroll and compensation
negative 7,900,000 US dollars
Loss from equity method investments
23,900,000 US dollars
Gain on bargain purchase
negative 106,300,000 US dollars
Investing activities
negative 647,500,000 US dollars. Net cash used.
Purchase of investment in privately held company
0 US dollars
Purchases of investments
negative 1,485,300,000 US dollars
Purchases of property and equipment
negative 281,300,000 US dollars
Other
100,000 US dollars
Purchases of marketable equity securities
negative 16,700,000 US dollars
Maturities of investments
1,382,700,000 US dollars
Payments made in connection with business combinations, net of cash acquired
negative 247,000,000 US dollars
Sales of investments
0 US dollars
Financing activities
negative 41,300,000 US dollars. Net cash used.
Proceeds from issuance of common stock
39,700,000 US dollars
Taxes paid related to net share settlement of equity awards
negative 79,600,000 US dollars
Other
negative 800,000 US dollars
Repurchase and retirement of common stock
negative 600,000 US dollars
Operating adjustment reconciliation
1,238,200,000 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
81,000,000 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
2,030,300,000 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
negative 300,000 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
3,178,400,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
1,091,400,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
1.46×. 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
1,780,500,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
281,300,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
1,499,200,000 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 $561.50M 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: 1,780,500,000 US dollars minus 281,300,000 US dollars equals 1,499,200,000 US dollars.
FORTINET, INC. (FTNT) FY2024 YTD Q3 Statement of Cash Flows Sankey chart
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