Fortive Corp (FTV)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	5,923,600	5,866,200	5,831,100	5,780,100	5,709,200	5,604,400	5,475,800	5,353,200	5,254,700	5,204,800	5,762,200	5,970,500	6,381,200	7,058,700	7,054,500	7,346,800	7,244,500	6,258,000	6,243,900	6,279,600
Property, plant and equipment	US$ in thousands	439,800	430,800	425,900	425,600	421,900	405,200	407,600	412,600	395,500	395,000	400,000	410,100	422,000	513,600	519,800	520,000	416,000	519,800	514,700	468,300
Fixed asset turnover		13.47	13.62	13.69	13.58	13.53	13.83	13.43	12.97	13.29	13.18	14.41	14.56	15.12	13.74	13.57	14.13	17.41	12.04	12.13	13.41

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,923,600K ÷ $439,800K
= 13.47

Fortive Corp's fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. The trend in the fixed asset turnover ratio over the past eight quarters demonstrates consistency and effectiveness in utilizing fixed assets. The ratio has been relatively high and stable, ranging from 13.02 to 14.02.

A fixed asset turnover ratio above 1 indicates that Fortive is generating more revenue per dollar of fixed assets invested, reflecting strong asset utilization. The consistent values around 13-14 indicate that Fortive is effectively managing and leveraging its fixed assets to drive revenue generation.

Overall, the stable and high fixed asset turnover ratio suggests that Fortive is efficiently using its fixed assets to generate sales, which could lead to improved profitability and return on investment.