Fortive Corp (FTV)

Payables 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
Payables US$ in thousands 677,400 608,600 623,000 557,900 480,800
Payables turnover 7.57 8.06 7.71 7.93 8.55

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $5,127,300K ÷ $677,400K
= 7.57

The payables turnover ratio of Fortive Corp has shown a declining trend over the past five years. It decreased from 8.55 in December 2020 to 7.57 in December 2024. This indicates that the company took longer to pay off its accounts payable over time. A lower payables turnover ratio could suggest potential liquidity issues or inefficiencies in managing the company's accounts payable. It is important for Fortive Corp to monitor and improve this ratio to ensure effective cash flow management and maintain good relationships with its suppliers.