Fortive Corp (FTV)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	6,208,800	4,380,800	3,896,200	3,423,600
Inventory	US$ in thousands	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	416,200	680,700	693,700	608,300
Inventory turnover		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	14.92	6.44	5.62	5.63

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,921,400K ÷ $536,900K
= 9.17

Fortive Corp's inventory turnover has shown relative stability over the past eight quarters, ranging between 4.13 and 4.60. This indicates that, on average, the company is able to sell and replace its inventory multiple times throughout the year, typically between 4.13 and 4.60 times. A higher inventory turnover ratio suggests efficient management of inventory levels, as the company is selling goods quickly and restocking promptly.

The consistency in the inventory turnover ratio indicates that Fortive Corp has been effectively managing its inventory levels and achieving a balance between avoiding stockouts and minimizing excess inventory. This is important for optimizing working capital and reducing carrying costs. Overall, the stable and relatively high inventory turnover ratio reflects positively on the company's operational efficiency in managing its inventory.