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.
Peer comparison
Dec 31, 2024
Company name
                    Symbol
                    Payables turnover
                Fortive Corp
                            FTV
                            7.57
                        Ametek Inc
                            AME
                            —
                        Cognex Corporation
                            CGNX
                            17.97
                        Danaher Corporation
                            DHR
                            —
                        Keysight Technologies Inc
                            KEYS
                            11.09
                        MKS Instruments Inc
                            MKSI
                            8.55
                        Roper Technologies, Inc.
                            ROP
                            —
                        Sensata Technologies Holding NV
                            ST
                            —