Fortive Corp (FTV)
Payables 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 |
| Payables | US$ in thousands | 608,600 | 574,800 | 585,600 | 593,000 | 623,000 | 572,600 | — | — | 557,900 | — | — | — | 480,800 | 777,100 | 733,000 | 745,400 | 765,500 | 693,800 | 697,900 | 667,800 |
| Payables turnover | 8.09 | 8.52 | 8.36 | 8.22 | 7.71 | 8.21 | — | — | 7.93 | — | — | — | 8.55 | 7.95 | 8.46 | 8.62 | 8.11 | 6.31 | 5.58 | 5.13 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,921,400K ÷ $608,600K
= 8.09
The payables turnover ratio of Fortive Corp, which measures how efficiently the company is managing its accounts payable, has been relatively stable over the past eight quarters. The trend shows consistency in managing its payable obligations to suppliers. The payables turnover ratio averaged around 4.13 during this period, with a slight fluctuation between a low of 3.95 in Q4 2022 and a high of 4.30 in Q3 2023.
A payables turnover ratio of around 4.13 indicates that, on average, Fortive Corp pays off its accounts payable obligations approximately 4.13 times a year. This suggests that the company is managing its supplier payments effectively and in a timely manner, without unnecessarily delaying payments or holding excessive amounts of cash. The stable and consistent performance in payables turnover over the eight quarters reflects a disciplined approach to managing working capital and maintaining good relationships with its suppliers.
Overall, the consistent payables turnover performance of Fortive Corp indicates effective management of accounts payable, contributing to the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023