Fortive Corp (FTV)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,903,800	4,800,900	4,426,800	4,111,100	6,208,800
Inventory	US$ in thousands	536,900	536,700	512,700	455,500	416,200
Inventory turnover		9.13	8.95	8.63	9.03	14.92

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,903,800K ÷ $536,900K
= 9.13

The inventory turnover for Fortive Corp has been relatively stable over the past five years, ranging from 4.38 to 5.68. This ratio indicates that Fortive has been efficient in managing its inventory levels and turning over its inventory into sales. With a higher inventory turnover ratio, the company is selling its inventory more quickly, which is generally a positive sign of operational efficiency. Fortive's inventory turnover has remained consistently above 4, indicating effective inventory management. The slight fluctuations in the ratio over the years may be influenced by changes in sales volumes, production efficiency, or inventory management strategies. Overall, Fortive Corp's inventory turnover suggests that the company has been effectively utilizing its inventory resources to generate sales revenue.