Fortive Corp (FTV)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	5,127,300	5,011,800	4,979,400	4,964,900	4,921,400	4,897,000	4,893,900	4,873,600	4,800,900	4,701,600	4,610,600	4,516,500	4,426,800	2,883,100	3,353,400	3,606,300	4,111,100	6,180,500	6,198,100	6,422,400
Inventory	US$ in thousands	544,800	563,900	572,000	580,800	536,900	552,500	561,200	570,200	536,700	560,500	547,700	553,300	512,700	506,800	488,000	466,600	455,500	661,800	664,500	650,400
Inventory turnover		9.41	8.89	8.71	8.55	9.17	8.86	8.72	8.55	8.95	8.39	8.42	8.16	8.63	5.69	6.87	7.73	9.03	9.34	9.33	9.87

December 31, 2024 calculation

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

Fortive Corp's inventory turnover ratio measures the efficiency of the company in managing its inventory. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly.

Analyzing the trend in Fortive Corp's inventory turnover from March 31, 2020, to December 31, 2024, reveals fluctuations in the ratio. The ratio started at 9.87 on March 31, 2020, indicating strong inventory turnover. However, it declined to 5.69 on September 30, 2021, suggesting a decrease in the pace of inventory turnover.

Subsequently, there was a recovery in the inventory turnover ratio, reaching 9.41 on December 31, 2024, indicating an improvement in inventory management efficiency. Overall, Fortive Corp's inventory turnover ratio fluctuated over the period but generally maintained within a moderate to high range, signaling effective inventory management practices.