Fortive Corp (FTV)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		8.06	7.71	7.93	8.55	8.11
Number of days of payables	days	45.30	47.37	46.00	42.69	45.00

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.06
= 45.30

The number of days of payables for Fortive Corp has exhibited fluctuating trends over the past five years. As of December 31, 2023, the company took approximately 89.89 days to pay its suppliers, which is a slight decrease compared to the previous year. This indicates that Fortive has improved its efficiency in managing its accounts payable, potentially negotiating better payment terms with suppliers.

Over the last five years, Fortive's number of days of payables has generally been within a narrow range, ranging from a low of 76.77 days in 2019 to a high of 92.35 days in 2022. This stability suggests that the company has been successful in maintaining a consistent approach to managing its payables.

Fortive's ability to effectively manage its payables is crucial for its working capital management. By optimizing its payment cycles, the company can ensure sufficient liquidity while also maximizing available cash for other operational needs or investment activities.

Overall, the trend in Fortive Corp's number of days of payables indicates a balanced approach to managing vendor payments, reflecting positively on the company's financial health and operational efficiency.