Fortive Corp (FTV)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 9.41 8.89 8.71 8.55 9.17 8.86 8.72 8.55 8.95 8.39 8.42 8.16 8.63 5.69 6.87 7.73 9.03 9.34 9.33 9.87
Receivables turnover 6.57 6.73 6.50 6.27 6.17 6.34 6.24 6.14 5.96 6.22 — — 5.65 — — — 7.88 5.85 6.25 5.58
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
Working capital turnover 17.55 11.49 12.82 6.90 3.15 118.99 — — — — — — — — 11.15 18.31 4.02 9.62 18.86 5.55

Activity ratios provide insights into how efficiently a company manages its assets to generate sales and cash flows. Let's analyze the activity ratios of Fortive Corp based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period.
- Fortive Corp's inventory turnover has fluctuated over the years, ranging from around 5.69 to 9.87.
- A decreasing trend in inventory turnover may indicate slower sales or potential inventory management issues.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly a company collects its accounts receivables.
- Fortive Corp's receivables turnover has varied, with values between 5.65 and 7.88.
- A higher turnover ratio suggests efficient credit policies and effective collection efforts.

3. Payables Turnover:
- The payables turnover ratio shows how quickly a company pays off its suppliers.
- Fortive Corp's payables turnover has ranged from around 7.44 to 8.52.
- A consistent or increasing payables turnover ratio may indicate good relationships with suppliers and efficient cash management.

4. Working Capital Turnover:
- The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate revenue.
- Fortive Corp's working capital turnover varies significantly, with values ranging from 3.15 to 118.99.
- A higher turnover ratio suggests effective management of working capital to support business operations and growth.

Overall, an analysis of Fortive Corp's activity ratios reveals fluctuations in efficiency and effectiveness in managing inventory, receivables, payables, and working capital. It is essential for the company to monitor these ratios regularly to optimize its operational performance and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 38.78 41.07 41.93 42.70 39.82 41.18 41.86 42.70 40.80 43.51 43.36 44.71 42.27 64.16 53.12 47.23 40.44 39.08 39.13 36.96
Days of sales outstanding (DSO) days 55.55 54.21 56.17 58.18 59.20 57.58 58.54 59.40 61.28 58.68 — — 64.61 — — — 46.35 62.44 58.42 65.46
Number of days of payables days 48.22 45.43 46.63 49.05 45.14 42.84 43.68 44.41 47.37 44.45 — — 46.00 — — — 42.69 45.89 43.17 42.36

Fortive Corp's Days of Inventory on Hand (DOH) has shown some fluctuations over the years but generally remained around 40 days, indicating the company typically holds about 40 days' worth of inventory on hand. This could suggest efficient inventory management practices, helping to minimize carrying costs and inventory obsolescence.

On the other hand, the Days of Sales Outstanding (DSO) exhibited some variability, ranging between 46 and 65 days. This metric reflects the average number of days it takes for the company to collect revenue after a sale. Lower DSO values are generally favorable as they indicate quicker cash collection, while higher values could signify potential issues with accounts receivable management.

The Number of Days of Payables, which ranged from about 40 to 50 days, demonstrates how long Fortive takes to pay its suppliers. A higher number of days of payables can indicate that the company is effectively using trade credit to manage its cash flow and working capital.

Overall, these activity ratios provide insights into Fortive Corp's operational efficiency, inventory management, receivables collection practices, and relationship with suppliers, crucial for evaluating the company's overall financial health and performance.

Long-term

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
Fixed asset turnover 14.34 14.45 14.53 14.29 13.47 13.62 13.69 13.58 13.53 13.83 13.43 12.97 13.29 13.18 14.41 14.56 15.12 13.74 13.57 14.13
Total asset turnover 0.37 0.35 0.35 0.34 0.35 0.37 0.37 0.37 0.36 0.35 0.34 0.33 0.32 0.35 0.40 0.42 0.40 0.41 0.42 0.43

Fortive Corp's Fixed Asset Turnover ratio measures how efficiently the company utilizes its fixed assets to generate sales. The ratio has shown relatively stable performance over the analyzed periods, ranging from around 12.97 to 15.12. This indicates that Fortive is effectively generating sales from its investment in fixed assets.

The Total Asset Turnover ratio gauges the company's ability to generate sales from all its assets. The trend for this ratio reveals a slight decline from 0.43 to 0.37 before stabilizing around 0.35 to 0.37. This indicates that Fortive's efficiency in generating sales from its total assets has been somewhat fluctuating but has remained within a relatively consistent range.

Overall, the analysis of Fortive Corp's long-term activity ratios suggests that the company has maintained efficiency in utilizing its fixed assets to generate sales. However, the declining trend in total asset turnover may indicate a need for the company to focus on optimizing the utilization of all its assets to enhance overall operational efficiency and profitability.