Fortive Corp (FTV)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	5,127,300	4,903,800	4,800,900	4,426,800	4,111,100
Inventory	US$ in thousands	544,800	536,900	536,700	512,700	455,500
Inventory turnover		9.41	9.13	8.95	8.63	9.03

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,127,300K ÷ $544,800K
= 9.41

To analyze Fortive Corp's inventory turnover, we will look at the trend over the past five years based on the provided data.

- In December 31, 2020, Fortive Corp had an inventory turnover of 9.03, indicating that the company's inventory was sold and replaced approximately 9.03 times during that year.
- The inventory turnover decreased slightly to 8.63 on December 31, 2021, suggesting a slower rate of inventory turnover compared to the previous year.
- However, the trend reversed in December 31, 2022, as the inventory turnover increased to 8.95, indicating a more efficient management of inventory.
- Furthermore, in December 31, 2023, the inventory turnover continued to improve to 9.13, reflecting a further increase in the efficiency of inventory turnover.
- By December 31, 2024, Fortive Corp achieved an even higher inventory turnover of 9.41, indicating that the company's inventory was being turned over at a faster rate.

Overall, the trend in Fortive Corp's inventory turnover over the past five years shows fluctuations but generally demonstrates improvements in the efficiency of managing and selling inventory.