Fortive Corp (FTV)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		9.41	9.13	8.95	8.63	9.03
DOH	days	38.78	39.96	40.80	42.27	40.44

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.41
= 38.78

The days of inventory on hand (DOH) for Fortive Corp has shown a fluctuating trend over the past five years. In 2020, the company held inventory for an average of 40.44 days, which increased to 42.27 days by the end of 2021. However, in 2022, there was a slight decline to 40.80 days, followed by a further decrease to 39.96 days in 2023. By the end of 2024, the DOH decreased to 38.78 days.

This trend suggests that Fortive Corp has been improving its inventory management efficiency, as it has been able to reduce the number of days inventory is held on average over the years. A lower DOH indicates that the company is selling its inventory more quickly, which can lead to lower holding costs and potentially increased cash flow. Overall, the decreasing trend in DOH for Fortive Corp reflects positively on the company's inventory management practices.