Fortive Corp (FTV)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	6,212,100	6,142,000	6,072,100	6,038,600	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
Property, plant and equipment	US$ in thousands	433,100	425,100	417,900	422,700	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
Fixed asset turnover		14.34	14.45	14.53	14.29	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

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,212,100K ÷ $433,100K
= 14.34

Based on the provided data, Fortive Corp's fixed asset turnover has been relatively stable over the period from March 31, 2020, to December 31, 2024. The fixed asset turnover ratio measures how efficiently the company generates sales revenue from its investment in fixed assets.

The fixed asset turnover ratio ranged from a low of 12.97 on March 31, 2022, to a high of 15.12 on December 31, 2020. This indicates that, on average, Fortive Corp generated sales approximately 12.97 to 15.12 times its investment in fixed assets during the respective periods.

A consistently high fixed asset turnover ratio signifies that Fortive Corp is effectively utilizing its fixed assets to generate revenue. However, a declining trend observed in recent quarters may indicate a potential decrease in asset productivity or a need for further analysis into the company's operational efficiency.

It is important to note that fixed asset turnover should be analyzed in conjunction with other financial ratios and qualitative factors to gain a more comprehensive understanding of Fortive Corp's overall financial performance and efficiency in asset utilization.