Fortive Corp (FTV)

Payables 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
Payables	US$ in thousands	677,400	623,800	636,100	667,200	608,600	574,800	585,600	593,000	623,000	572,600	—	—	557,900	—	—	—	480,800	777,100	733,000	745,400
Payables turnover		7.57	8.03	7.83	7.44	8.09	8.52	8.36	8.22	7.71	8.21	—	—	7.93	—	—	—	8.55	7.95	8.46	8.62

December 31, 2024 calculation

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

The payables turnover ratio for Fortive Corp has shown variability over the periods provided. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its suppliers during a specific period.

Based on the data provided:
- The payables turnover ratio ranges from a low of 7.44 to a high of 8.62 during the periods outlined.
- The ratio generally hovers around the 8 mark, indicating that Fortive Corp typically pays off its suppliers approximately 8 times a year.
- There are some fluctuations in the ratio, with some periods showing a slight decrease before picking up again, such as the decrease from 8.55 to 7.93 observed between December 31, 2020, and December 31, 2021.

Overall, a payables turnover ratio around 8 suggests that Fortive Corp manages its accounts payable effectively, balancing timely payments with maintaining good relationships with suppliers. However, a downward trend in the ratio may indicate potential liquidity or supply chain management concerns that need further investigation.